Trade Performance and Fund Flow Week Ended 28 February 2025
- Emerging markets experienced broad declines last week, driven by increasing fears of a renewed trade war following the reaffirmation by the US to impose a 25% tariff on Canada and Mexico effective 4 March 2025. On top of that, the US also announced an additional 10% tariff on China’s imports on top of the 10% tariff that was implemented on 4 February 2025, All major Asian indices observed ended lower except for VNINDEX, while the MSCI Emerging Market (EM) index reverted to a net loss position by closing 4.4% lower week-on-week (WoW). Foreign investors retreated from all the Asian markets observed.
- Following the announcement of additional tariffs by the U.S on its imports, China’s stock markets closed lower last week as the SHCOMP and SZCOMP shrank 1.7% and 3.0% WoW respectively. Nonetheless, both indices ended February on a positive note with a 2.2% and 6.0% increase respectively. Meanwhile, according to news flows, China intends to re-capitalise several of its biggest banks in the upcoming months as part of its broad stimulus package announced last year. The Chinese authorities are looking at injecting at least USD55 bil of fresh capital into the first batch of Agricultural Bank of China Ltd, Bank of Communications Co and Postal Savings Bank of China Co,.
- The domestic market trended downwards in the last week of February, as investors turned risk-off following US’ tariff threats towards Canada and Mexico which is set to take effect on 4 March, alongside the announcement of an additional 10% duty on Chinese imports. Nonetheless, the FBMKLCI performed positively for the month of February whereby it climbed 1.1% month-on-month.
- Overall market capitalisation continued to retrace, closing 2.7% lower at RM1,923.70 bil last week. This decline was driven by a broad-based market contraction, with 10 out of 13 sectorial indices moderating on a week-on-week (WoW) basis.
Published Date
04 Mar 2025
Publisher
Bursa Digital Research
