Trade Performance and Fund Flow Week Ended 26 April 2024

▪ Emerging markets rebounded from previous losses last week as investors scaled back on fears over escalated tension in the Middle East, with gains observed in 9 out of the 10 major indices. The upward momentum was also supported by positive corporate earnings from U.S. megacaps such as Microsoft and Alphabet (Google’s parent company), which helped counterbalance Meta Platforms’ disappointing results.  

▪ Chinese markets posted commendable gains, with the Shenzhen Composite Index and Shanghai Composite Index advanced +2.5% and +0.8% respectively. This was attributed to targeted policy measures aimed at facilitating investment by overseas institutions in Chinese technology-oriented enterprises. Additionally, approval was granted for both the dollar-denominated qualified foreign institutional investor program (QFII) and its renminbi-denominated counterpart (RQFII), which allow overseas capital to be converted into RMB funds for investment in private equities or the venture capital market in China. Improved investor confidence was further bolstered by international investment firms such as UBS Group AG, which revised their outlook for Chinese stocks to overweight from neutral. 

▪ The TWSE Index and KOSPI Index also reversed from its net loss position to close +3.0% and +2.5% higher respectively following gains in U.S. markets, driven by better-than-expected quarterly earnings from technology giants. Taiwan also saw foreign inflows for the first time in six consecutive weeks. 

▪ In Southeast Asia, all stock exchanges closed higher with the exception to Indonesia where the JCI moderated by -0.7%. Singapore stock exchange recorded the highest gain in EM, with its STI’s weekly growth expanded by 3.5 times and surpassing 3,280-point plateau, in line with the regional rally. The VNINDEX grew higher by +3.0%, followed by PCOMP Index (+2.9%), SET (+2.1%) and FBMKLCI (+1.8%).