Trade Performance and Fund Flow week ended 2 August 2024
- Emerging markets moderated further last week with six out of the ten Asian stock exchanges observed closed lower while the MSCI Emerging Index (EM) extended its losses by closing 1.0% lower than its previous week. This came after the US posted a weaker-than-expected jobs and manufacturing data which had triggered fears over a potential recession in the country. Additionally, the US Federal Reserve maintained its federal fund rate at its recent policy meeting while also hinting that it may trim its interest rates in September, provided the U.S economics data remains in their favour.
- China markets made soft rebound last week as both the Shanghai Composite Index and Shenzhen Composite Index closed 0.5% and 0.8% higher respectively. In its recent Politburo meeting, the Chinese leaders reiterated the country’s annual economic growth target of about 5.0% while also planning to roll out more stimulus measures aimed at consumers. However, investors remained pessimistic on the country’s economic prospects due to the lack of any major policy support.
- Overall market capitalisation continued to retreat last week and closed 1.8% lower at RM2,025.24 bil following broad-based contraction that saw 12 out of 13 sectorial indices declined.
- The FBMKLCI closed marginally lower from the previous week at 1,611.05pts. The softened performance was mainly attributed to rising concerns over a potential U.S. economic recession following weaker-than-expected U.S. ISM manufacturing index results and cooling U.S. labour market data. Nevertheless, the FBMKLCI performed positively for the month of July where it climbed 2.2% month-on-month (MoM) and 10.8% on a year-to-date (YTD) basis.
Published Date
06 Aug 2024
Publisher
Bursa Digital Research
