Trade Performance and Fund Flow week ended 9 August 2024
- Emerging markets began the week on a negative note on the back of growing fears of the US entering a potential recession. This came after the country posted weaker US labour data whereby its unemployment rate reached 4.3% in July which was at a near 3-year high, while concern over US Federal Reserve waited too long in reducing key interest rates further weigh on the sentiment.
- Towards end of the week, emerging markets rebounded as the US posted firmer weekly labour data whereby initial jobless claims dropped by 17,000 from the previous week’s revised figure of 250,000. The US Federal Reserve also reiterated that the US economy isn’t entering a recession. Overall, the MSCI Emerging Market Index closed slightly higher at 0.2% last week.
- Overall market capitalisation moderated for the third consecutive week and closed 1.2% lower at RM2,001.60 bil, dragged by a broad-based market decline whereby all 13 sectors contracted.
- The FBMKLCI ended the week 0.9% lower from its previous week at 1,596.05pts. The benchmark index began the week by falling 4.6% on 5 August before making a soft rebound towards end of the week. The decline was largely due to a global sell-off spurred by concerns over recession risk in the U.S. market. The sentiment was further shaken by the unwinding of carry trades as the Japanese yen appreciated following the Bank of Japan’s rate hike on July 31. Nevertheless, the Malaysian Ringgit appreciated by 3.6% YTD to RM4.4265 against the US dollar by the end of the week, marking the highest level since 17 April 2023. The Ringgit also emerged as the top performing currency among its regional peers.
Published Date
13 Aug 2024
Publisher
Bursa Digital Research
