Trade Performance and Fund Flow Week Ended 12 July
- Emerging markets extended its gain last week amid speculation that the US Fed Reserves would start trimming its interest rates as early as September 2024. This came after the US reported further cooling of its labour market alongside the unexpected decline of its Consumer Price Index for the month of June. As a result, 8 out of 10 Asian stock exchanges under observation closed higher while the MSCI Emerging Market Index rose 1.7% to close at 1,123.56pts.
- China markets rebounded last week after experiencing four consecutive weeks of net losses with both the Shanghai Composite Index and Shenzhen Composite Index closed 0.7% and 1.7% higher. The country posted a trade surplus of USD99 bil last month, a level last seen since July 2022, following acceleration in its exports growth at the highest rate in 15 months. Investors would be closely monitoring the government’s Third Plenum policy meeting this week whereby it is expected to introduce measures that will stem the country’s economic growth as well as addressing issues pertaining to its property market and debt risks.
- Overall market capitalisation climbed to a new YTD high of RM2,084.99 bil on Thursday before closing lower at the end of the week. Growth was recorded in seven out of 13 sectors, with the Construction sector taking the lead.
- The FBMKLCI inched up by 0.5% WoW at 1,619.06pts, driven by rising hopes for a September rate cut following the release of softer-than-expected U.S. inflation data. Furthermore, the upgrade of Malaysia’s rating by JP Morgan from underweight to neutral offered additional impetus to elevate investor sentiments.
Published Date
16 Jul 2024
Publisher
Bursa Digital Research
