Trade Performance and Fund Flow Week Ended 24 January
- Emerging markets experienced a broad-based market growth last week, with eight out of ten Asian stock exchanges observed closing higher and the MSCI Emerging Markets (EM) gaining 1.9% week-on-week (WoW). While ongoing trade tensions and uncertainty in US tariff plan continued to limit market’s upside, investors remained hopeful for a rate cut in the first quarter, after the newly inaugurated US President called upon the US Federal Reserve to promptly ease its monetary policy to stimulate demand growth. The next Federal Open Market Committee (FOMC) meeting is set to take place on 28-29 January 2025, The US Federal Reserve is expected to keep its benchmark interest rate steady at its upcoming meeting.
- Foreign investors remained cautious as they were net sellers in all Asian countries observed, except for Taiwan and Vietnam.
- China’s stock markets extended their gains last week, with the SHCOMP and SZCOMP inching up by 0.3% and 1.1%, respectively. Growth was attributed to the country’s new measures to revive its stock markets by luring investments from major state insurers and commercial insurance funds into domestic stocks. Additionally, trade tensions between China and the US took a breather after a conversation between both the country’s premier. US Presidents indicated that he would rather not impose tariffs on China, signalling a potentially softer stance on tariffs.
- The FBMKLCI rebounded from the previous week’s loss and closed marginally higher by 0.4%, mirroring the broader growth in the Emerging Market. During the week, the Malaysian benchmark index inched up four out of five days. The Central Bank left its benchmark interest rate unchanged at 3%.
- Overall market capitalisation climbed 0.4% week-on-week to RM1,996.95 bil, with growth led by Industrial, Plantation, Telecommunication, Transportation, REITs and Financial Services.
- In terms of trading activity, 15.59 bil shares worth RM13.11 bil changed hands in the open market last week, bringing the YTD average daily traded value (ADV) to RM2.76 bil.
Published Date
27 Jan 2025
Publisher
Bursa Digital Research
