Trade Performance and Fund Flow Week Ended 10 January
- Emerging markets experienced broad declines last week, with eight out ten major Asian stock exchanges ending lower, while the MSCI Emerging Market (EM) Index extended its losses by closing 1.5% lower week-on-week (WoW). Global investors continued to exercise caution ahead of the upcoming inauguration of US president-elect Donald Trump and the impacts arising from the possible implementation of a more aggressive, punitive trade protectionist policies on China, Mexico, Canada and other US trading partners. Collectively, foreign investors withdrew their funds from all major Asian markets observed, except for Korea. Sentiment was further weighed down by increasing uncertainties relating to future US Federal Reserve rate cuts, as minutes from the recent Federal Open Market Committee (FOMC) meeting highlighted increasing upside risk to the US inflation outlook while US Fed officials expect slower rate cuts in 2025.
- China’s stock markets moderated further last week as both the SHCOMP and SZCOMP closed 1.3% and 1.0% lower, respectively. Geopolitical tensions escalated last week as the US added Tencent Holdings Ltd and Contemporary Amperex Technology Co to its Chinese Military Blacklist. Furthermore, the country reported the slowest inflation growth in nine months in December, signalling potential deflation risk. China’s consumer price index (CPI) rose 0.1% year-on-year (YoY) in December, while its producer price index (PPI) was down 2.3% YoY in December.
- The FBMKLCI declined to 1,602.41 pts, retreating from the previous week’s gains. This softer performance aligned with the broader regional trend, weighed down by the FOMC’s cautious stance on rate cuts, rising inflation concerns and potential policy shifts under the incoming U.S. administration.
- Overall market capitalisation reversed its net gain, dropping by 1.9% lower week-on-week (WoW) to close at RM2,034.77 bil. This was driven by broad-based moderation across most sectors, with only the Construction and REITs sectors showing expansion. All FBM series indices contracted, with the FBM 100 ESG Low Carbon Shariah recording the largest decline of 2.5%.
Published Date
14 Jan 2025
Publisher
Bursa Digital Research
