Trade Performance and Fund Flow Week Ended 2 February 2024

▪ Emerging market extended its winning streak, with the MSCI Emerging Market Index (EM) extending its gain by closing at 0.7% higher from its previous week following rebound in key Chinese indices after the country’s sovereign wealth fund pledged to increase its investment in the A-share market. The change of leadership at the market regulator with Wu Qing taking up the helm further signalled the authorities’ steadfast resolution in fostering stability of its capital market, offering a boost in investor confidence. The Shanghai Composite Index and Shenzhen Composite Index ended significantly higher last week by closing at 5.0% and 5.7%.  

▪ KOSPI’s growth slowed to 0.2% last week. Foreign investors continued to buy into Korean stocks but it was less than half as compared to the week before.  

▪ Vietnam stock exchange recorded the highest gain in EM ex-China last week with its VNINDEX Index rebounded from its contraction last week to close with a 2.2% increase.  

▪ In ASEAN-5, the Philippine index closed at 2.1% higher as the country pondered the removal of the 40% restriction for foreign ownership of public utilities, educational institutions and the advertising industry. The liberalisation move has lifted foreign net inflow by more than triple last week.   

▪ FBMKLCI, STI Index and JCI index reversed their position from gain to loss last week. STI Index closed 1.3% lower from its previous week. As for the FBMKLCI, its rally has reversed as the index closed marginally lower by 0.3%, while the JCI index closed 0.1% lower. Meanwhile, SET Index extended its gains with a 0.3% growth despite foreign investors reversed to net seller.