Trade Performance and Fund Flow Week Ended 6 September
- Emerging markets moderated last week as six out of the ten Asian stock exchanges observed shrank, with the MSCI Emerging Markets (EM) extending its loss by closing 2.3% lower. This contraction was sparked by fears of a potential hard landing for the US economy, following its weaker-than-expected Institute for Supply Management (ISM) Manufacturing Purchasing Manager Index (PMI) data, which revealed that US manufacturing activity declined for the fifth consecutive month. Investors were also closely monitoring the announcement on US jobs data, a key gauge to the magnitude of interest rate cuts by the US Federal Reserves.
- China markets ended on a negative note last week with both the Shanghai Composite Index and Shenzhen Composite index closed 2.7% and 2.5% lower after a weak earnings season. Earnings per share for the MSCI China Index contracted by 4.5% year-on-year in the second quarter, according to newsflows. Pessimistic outlook of the world’s second largest economy also triggered a foreign investment bank to downgrade China from “overweight” to “neutral”, citing heightened volatility surrounding the upcoming U.S elections on top of the country’s growth headwinds, while a potential heightened tariff war between Washington and Beijing further weighs on the bearish sentiment.
- Overall market capitalisation retreated and closed 1.8% lower at RM1,998.71 bil, dragged by a broad-based market contraction that saw 11 out of 13 sectorial indices decline. Only Healthcare and REITs inched higher week-on-week.
- The FBMKLCI snapped a three-week rally and ended on a downbeat note at 1,653.12pts last week. The weakened performance was largely due to renewed fear for US recession, global tech stock sell-off and Nvidia’s weaker guidance.
Published Date
10 Sep 2024
Publisher
Bursa Digital Research
