Trade Performance and Fund Flow Week Ended 16 August
- Emerging markets rebounded from its previous losses last week as investors scaled back on fears over a potential recession in the United States (U.S), with gains observed in 9 out of 10 indices. The upward momentum was supported by positive U.S economic data whereby retail sales in the country increased 1% in July, which was above expectations while weekly jobless claims dropped last week. Overall, the MSCI Emerging Markets (EM) closed 2.8% higher last week.
- China markets closed with a mixed performance last week as the Shanghai Composite Index edged slightly higher while the Shenzhen Composite index ended the week on a net loss. Both markets lagged as compared to its regional peers as the country posted mixed economic readings whereby its unemployment rate grew higher than expected in July while its retail sales posted a better-than-expected growth. Furthermore, the country’s central bank is also set to decide on its benchmark loan prime rate next week after an unexpected cut in the key interest rate in July. On the other hand, the country’s stock exchanges will also stop releasing daily data on overseas fund flows starting on 19 August 2024.
- Overall market capitalisation rebounded from previous week’s loss and grew by 1.3% week-onweek (WoW) to RM2,027.20 bil. The rally was supported by broad-based market recovery, with 9 out of 13 sectors reported growth.
- The FBMKLCI recouped losses with a 1.7% growth and stayed above the psychological level of 1,600pts throughout the week. The index has risen for five consecutive days as sentiment improved driven by better-than-expected CPI and PPI inflation figures in the U.S., with the headline CPI inflation falling to 2.9% for the first time since 2021. Additionally, Malaysia’s accelerated GDP growth of 5.9% YoY in 2QCY2024 has spurred further investor confidence. It is also worth noting that SUNWAY will be included in the MSCI EM Index effective on 30 August 2024 following the MSCI Quarterly Index review.
Published Date
20 Aug 2024
Publisher
Bursa Digital Research
