Trade Performance and Fund Flow Week Ended 21 February 2025
- Emerging markets experienced a broad-based growth last week, as eight out of ten major Asian indices observed ended higher, while the MSCI Emerging Market (EM) index rose by 2.0% week-on-week (WoW). However, global investors continued to exercise caution as they rotated their funds out of all the major Asian markets observed except for India, Taiwan and Thailand.
- Minutes from the recent Federal Open Market Committee (FOMC) meeting reaffirmed the US Federal Reserve’s ‘wait and see’ approach towards any adjustments to its monetary policy amid stubborn inflation in the U.S and uncertainties relating to its tariff plans.
- China’s stock markets trended higher, with the SHCOMP and SZCOMP closing 1.0% and 2.7% higher WoW. Sentiment in China improved following the possibility of a new trade deal between the Washington and Beijing, as commented by the US President. Additionally, several investment banks such as Morgan Stanley, JP Morgan and Goldman Sachs have upgraded their stance on Chinese equities, following a sustainable rally spurred by the country’s capabilities in Artificial Intelligence (AI). Goldman Sachs raised its target for the MSCI China Index to 85 over the next 12 months, up from their previous target of 75.
- The FBMKLCI closed marginally lower at 1,591.03pts. Overall market capitalisation continued to retreat, closing 1.2% lower at RM1,977.39 bil, with 10 out of 13 sectorial indices contracting.
Published Date
25 Feb 2025
Publisher
Bursa Digital Research
