Trade Performance and Fund Flow Week Ended 27 September
- Emerging markets expanded further last week, primarily driven by Chinese markets after experiencing their biggest weekly rally since 2008. Both the Shanghai Composite Index and Shenzhen Composite Index emerged as top performers among their Asian peers, closing 12.8% and 16.3% higher respectively. Last week, China’s central bank unveiled a broad package of monetary stimulus measures in an attempt to revive its economy. These stimulus measures include an RMB800 billion injection into the country’s stock market to boost liquidity, as well as a plan to create a stock market stabilisation fund. Additionally, the central bank trimmed its key interest rates, cutting its seven-day reverse repo rate by 0.2 percentage points to 1.5% and slashing the reserve requirement ratio (RRR) of financial institutions by 0.5 percentage points. All in all, six out of the ten observed Asian stock exchanges closed higher last week, while the MSCI Emerging Markets (EM) closed 6.2% higher.
- Stock exchanges in Southeast Asia mostly ended on a negative note last week as only two out of six exchanges closed higher. The PCOMP index posted the largest gains among its Southeast Asian peers as it advanced by 2.4% while being the only country to witness foreign inflows during the week (+USD190.42 mil).
- Overall market capitalisation moderated and closed 0.2% lower at RM2,051.90 bil, dragged by a broad-based market decline where 10 out of 13 sector indices edged lower on a week-on-week (WoW) basis.
- The FBMKLCI pared its gains to close marginally lower at 1,660.09pts, primarily due to broad-based profit-taking activities. The contraction was in line with the performance of its regional peers.
Published Date
01 Oct 2024
Publisher
Bursa Digital Research
