Trade Performance and Fund Flow Week Ended 30 August
- Emerging markets closed mixed again last week as September rate cuts drew closer. The MSCI Emerging Markets (EM) contracted slightly last week but maintained its net gain position month-on-month. Upcoming US labour market data is set to provide the necessary gauge to Federal Reserve, depending on the extent of reduction.
- China markets ended the week on a mixed note, with the Shanghai Composite Index contracting while the Shenzhen Composite index rose week-on-week. China reported worsening residential sales in August despite the country’s effort to cushion the downturn. According to the preliminary data from China Real Estate Information Corp, the 100 biggest real estate companies reported a 26.8% year-on-year declined in new-home sales value. The world’s second largest economy also saw a moderation in its factory activity as the official manufacturing purchasing managers’ index (PMI) declined to 49.1 from 49.4 in July, and was below the median forecast of 49.5 survey by Bloomberg News. In another development, China is considering allowing homeowners to refinance their mortgages to lower their borrowing costs. The new plan targets existing homeowners, who have been left out as new homebuyers that enjoyed sizable cuts to key rates this year.
- Overall market capitalisation ended on a positive note last week and climbed 0.8% week-on-week (WoW) to RM2,035.63 bil. Growth was supported by 7 out of 13 sectors that closed higher WoW.
- The FBMKLCI extended its winning streak where it once again reached a year-to-date (YTD) high of 1,678.80pts at the end of the week. This upward trend was attributed to a surge in sentiment within the Financial Services sector, underpinned by the robust quarterly earnings reports from key players.
Published Date
03 Sep 2024
Publisher
Bursa Digital Research
