Trend Wise $

25/03/2025

Foreign investors pulled about USD565 million from eight Asian markets in the week ending March 24, 2025.

However, South Korea saw a big turnaround, receiving USD1.68 billion after nine weeks of losses, and the Philippines also gained US$40.1 million for the third week in a row.

On the other hand, Indonesia continued its losing streak for the ninth straight week, with US$432.1 million in outflows.

Malaysia faced its 22nd week of foreign selling, losing RM1.25 billion, mainly in the financial sector. Local institutions and retail investors helped soften the blow with some inflows.

24/03/2025

Recent reports show some interesting trends in China's financial markets. China’s stock market is seeing a big boost, especially with more money going into tech companies.

This is attracting both local and global investors who are looking to get in on the action. Bank of America points out that China's stock market seems to be moving faster than the country’s overall economic growth, which could mean it’s getting a bit overpriced.

Even so, many experts think China’s markets are set to do better than the U.S. in the near future, as the strength of the American economy starts to slow down. A big part of this is the race in technology, like AI and semiconductors, where China is making big strides. While there are concerns about the economy, investors are betting that China’s growth potential will pay off in the long run, even though there are still some risks involved.

20/03/2025

The Australian stock market had a rough day on March 11, 2025. The ASX200 dropped 0.91% to 7,890 points, hitting its lowest level in seven months. This wiped out about $50 billion from the market.

Tech stocks were hit the hardest, falling nearly 4%, following a sell-off in the U.S. Companies like WiseTech Global and Xero saw big losses.

Qantas also took a hit, dropping over 8%, partly because of dividend adjustments and concerns about the airline industry. Overall, investors are feeling nervous about a possible economic slowdown linked to U.S. trade policies.

18/03/2025

Indonesia’s stock market had a rough day on March 18, 2025, dropping 7% because investors were worried about the country’s economy and government policies. The Jakarta Composite Index hit its lowest point since 2021, triggering a 30-minute pause in trading after it fell more than 5%.

A big reason for this drop is uncertainty about Finance Minister Sri Mulyani Indrawati’s future and concerns over how much money the government is spending on building the new capital, Nusantara. On top of that, government revenue fell by almost 30% in January, making people nervous about the country’s finances.

The Indonesian rupiah also lost value, hitting a two-week low before the central bank’s upcoming decision on interest rates, which are expected to stay the same to keep the currency stable.

18/03/2025

Warren Buffett's Berkshire Hathaway has increased its stakes in Japan's top five trading houses—Mitsubishi Corp, Mitsui & Co, Itochu Corp, Marubeni Corp, and Sumitomo Corp—to nearly 10% each. Specifically, Berkshire's stake in Mitsui rose to 9.82% from 8.09%, with similar increases in the other firms.

These trading houses, known as "sogo shosha," operate across diverse sectors, including materials, products, food, logistics, shipping, energy, and metals. Buffett first invested in these companies in 2020 and has expressed admiration for their operational diversity, prudent cash management, and modest executive compensation.

The recent increase follows an agreement allowing Berkshire to relax its previous 10% ownership ceiling, signaling a long-term commitment to these investments.

Despite challenges like falling commodity prices, high interest rates, and inflation, Buffett plans to hold these stakes for decades, reflecting confidence in their resilience and strategic value.

Berkshire Hathaway raised its holdings in five Japanese trading houses — Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo.

18/03/2025

In the week ending March 14, 2025, Bursa Malaysia experienced a substantial net outflow of RM1.34 billion due to escalating trade tensions between the U.S. and its trading partners.

Foreign investors were net sellers every trading day that week, with the heaviest outflow of RM446.6 million occurring on Tuesday. The financial services sector faced the most significant net outflow at RM703.8 million, followed by consumer products and services (RM122.6 million) and utilities (RM119.2 million).

Conversely, local institutions acted as net buyers for the 21st consecutive week, with a net inflow of RM1.31 billion, more than doubling the RM617.3 million from the previous week. Local retail investors also remained net buyers, although their net purchases declined to RM31.5 million from RM264.2 million in the preceding week. Average daily trading volumes increased across the board, with foreign investors and local institutions recording gains of 11% and 10.9%, respectively, while local retailers saw a marginal decline of 1.6%.

This trend reflects a broader pattern observed in regional markets, where foreign funds have been consistently withdrawing from Asian equities over multiple weeks.

The sustained outflow underscores the impact of global economic uncertainties on investor behavior in emerging markets like Malaysia

21/11/2024

Donald Trump’s return to the presidency signals a shift in U.S. energy policy, focusing on boosting domestic oil and natural gas production through deregulation and tax cuts. This could increase U.S. oil output and reduce global prices, affecting major
producers like OPEC+.

Meanwhile, a potential resolution to the Russia-Ukraine conflict may ease sanctions, allowing Russian oil
to re-enter the market.

These factors might lead to cautious investment strategies by companies like Petronas. Additionally, renewable energy initiatives are likely to face setbacks under Trump’s fossil fuel-centric agenda.

Donald Trump's energy policies emphasize increased U.S. oil and natural gas production, deregulation, and potential resolution
of the Russia-Ukraine conflict.

For Malaysia, these policies may lead to:

1) Pressure on Oil Prices: Increased U.S. output and exports could depress global crude prices, impacting Malaysia's oil revenue,
particularly through Petronas.

2)Reduced Demand: China's slowing oil imports and U.S. energy dominance might challenge Malaysia's LNG exports.

3)Economic Uncertainty: A bearish global energy market might reduce investments in Malaysia's oil and gas sector, prompting cautious
spending.

KUALA LUMPUR: The recently-elected 47th US President Donald Trump is expected to advance his commitment to expand domestic oil production.

10/10/2024

U.S.， and intriguingly, Australia, have the most expensive stocks by one measure

Why one trader says most U.S. stocks are expensive, and many foreign ones are cheap.

19/09/2024

The Federal Reserve cut its interest rate by 50 basis points, marking its first rate reduction since the early stages of the COVID-19 pandemic. This aggressive cut lowers the federal funds rate to a range between 4.75% and 5%, aiming to stabilize inflation and address concerns about the labor market slowdown. The decision was influenced by recent softening in inflation and job gains. The central bank also signaled potential further cuts of 50 basis points by the end of 2023, bringing overall reductions to 2 percentage points through 2026.

Fed Chair Jerome Powell emphasized the Fed’s goal of achieving price stability without triggering a significant increase in unemployment. Despite some volatility in the stock market following the decision, Powell reassured the public that future rate adjustments would be made as needed. While inflation remains above the 2% target, it has significantly declined from its peak, and the labor market has shown signs of cooling. The rate cut also reflects broader global economic trends, with other central banks likely to follow the Fed’s lead.

06/05/2024

Hang Seng was down 40% for the last four years

Amid support from US rates and Chinese policies, investors are finally showing interest in Hong Kong stocks again. It’s still far from the market’s heyday but the path has not been this clear for years.

05/05/2024

05/05/2024

Surprisingly upbeat Apple earnings were boosting spirits in the wait for the monthly jobs report.