Trade Performance and Fund Flow Week Ended 23 August
- Emerging markets closed mixed last week as investors looked into September rate cuts after Federal Reserve minutes signalled US interest rate cuts were set to begin in a few weeks’ time. Overall, the MSCI Emerging Markets (EM) maintained its net gain position as it rose 0.6% to close at 1,100.68pts, while all Southeast Asian stock exchanges closed higher.
- China markets ended the week in a negative note as both the Shanghai Composite Index and Shenzhen Composite index closed 0.9% and 2.8% lower respectively. People’s Bank of China kept its benchmark one-year and five-year loan prime rate unchanged last week at 3.35% and 3.85% respectively. The country’s central bank is expected to further reduce its benchmark interest rates this year to support economic growth and to reduce the risk of further devaluation of Chinese yuan in line with the global trend of central banks cutting rates.
- Overall market capitalisation has retreated and closed 0.4% lower at RM2,019.28 bil. The decline was dragged by a broad-based market contraction, with 11 out of 13 sectorial indices edged lower on a week-on-week (WoW) basis.
- The FBMKLCI reached a YTD high of 1,648.70pts on 19 August before closing lower at 1,635.74pts at the end of the week. The climb was supported by positive market sentiment as the Federal Reserve (Fed) minutes suggested a dovish stance in the upcoming FOMC meeting with a possible 25 basis point rate cut. Investors were also anticipating better corporate earnings season this month.
Published Date
27 Aug 2024
Publisher
Bursa Digital Research
