Trade Performance and Fund Flow Week Ended 5 July
- Emerging markets climbed by 1.7% last week to close at 1,104.88 pts following a broad-based increase across the countries observed, with exception to China. Market optimism over rate cut by Federal Reserve later this year coupled with AI theme play have drawn robust foreign purchase into Asian equities whereby six out of eight countries observed recorded net inflows.
- China markets continued to trend downwards for the fourth consecutive week with both the Shanghai Composite Index and Shenzhen Composite Index closed 0.6% and 1.7% lower. The country’s growth continued to be hampered by the additional duties imposed by the European Commission on Chinese cars. Investors are anticipating further clarity on speculated consumption tax reform in the government’s upcoming Third Plenum policy meeting from 15 to 18 July.
- Overall market capitalisation rebounded from previous losses and reached a new YTD high on 4 July 2024 before closing lower at RM2,065.40 bil at the end of the week. This translates to a 1.9% growth WoW alongside a broad-based market recovery in which all 13 sectors reported growth.
- The FBMKLCI recovered from losses over the previous three weeks and grew by 1.3% WoW to 1,611.02pts. The improved performance was attributed to cooling job growth in the US and an increase in the unemployment rate to the highest level for more than two and a half year which prompted expectations that the Federal Reserve (Fed) may start reducing interest rates later this year. Investors’ focus will be on the upcoming US CPI and PPI data this week.
Published Date
10 Jul 2024
Publisher
Bursa Digital Research
