Number of Covid-19 cases globally rose from 14.5 million to 16.2 million over the week as the resurgence of the virus spread across the globe. Financial markets slid lower as investors’ focus turned towards safer haven assets, even pushing aside the tech-sector, which had previously done well with support from the “work-from-home” trend. Geopolitical tensions between the US, and China heightened after a “tit-for-tat” move saw consulates being ordered to close. Gold price continued its steady climb, gaining 5.04% last week as uncertainties continue to loom over global economies. 


In the News

  • Global markets were kept on its toes after a sudden rapid rise in the number of Covid-19 cases globally. There are now more than 16.2 million reported cases, and close to 650,000 deaths caused by the virus as we continue to scramble for a vaccine.
  • The US continues to grapple with the pandemic, and now has more than 4.3 million cases and close to 150,000 fatalities. Reopening plans have been pushed back as states desperately look for ways to curb the spread, whilst the federal government continue to urge for the reopening of schools.
  • Unemployment benefits of USD 600 per week in the US is also set to expire this week.  While there were talks that the benefits may be extended till the end of the year at a reduced rate of USD 100 per week, no confirmation has been made. How this would impact the US economy and the unemployed in the US will remain to be seen.
  • Attention was diverted momentarily as tensions brewed between the US and China after the US’ move to order the closure of China’s consulate in Houston was quickly retaliated with China’s own order to close the US’ consulate in Chengdu. The deteriorating relationship between the US and China put pressure on global financial markets as investors kept a watchful eye on the development between the two major economies. 
  • China’s equity market took a hit as rising tensions kept investors at bay. The Shanghai Composite Index slid 0.89%, while the CSI300 Index ended the week 1.21% lower. The consumption focused S&P New China Sectors Ex A Share Index fared better, shedding 0.88% and remains the best performer amongst the 3 with a 19.41% YTD returns in MYR terms. 0829EA ended the week with a 19.04% gain on a YTD basis, despite the dip of 0.87% performance last week.
  • The Malaysian domestic market saw support from glove stocks which has seen strong global demand for its products. The meteoric rise of glove stocks have also led to a spike in market capitalisation for the local bourse, closing the gap with its Singapore counterpart. The Dorsey Wright Technical Leaders Malaysia Index, which is tracked by the 0836EA, rose 1.77% last week, outperforming the broader KLCI Index which recorded a -0.42% return over the same period. 
  • Gold price jumped over the week to a new high in 9-years as uncertainties continue to loom over markets. The LBMA Index was the strongest performer last week after rising 5.04% in MYR terms. The 0828EA continued its climb higher with the rise in Gold price, and now has a YTD gain of 28.75% in MYR terms.


On the Economic Data Front

  • Mixed economic data points from the US
    • Jobless claims rose to 1.41 million, from the previous week’s 1.31 million. This marked the 18th consecutive week that claims were above 1 million.
    • US new home sales numbers surge in June by 13.8% to 776,000 – its fastest rise in 13-years, said to be attributed to the lower mortgage rates.
  • EU leaders agree on stimulus
    • EU leaders agree on a EUR 750 billion stimulus plan – enabling the EU to raise funds from the capital markets on behalf of its member.
    • Flash Eurzone PMI rose to 54.8 in July, a healthy jump from the 48.5 reading in June after improved numbers from both the manufacturing, and service sectors.


ETF strategies at TradePlus


A look at the performance of the TradePlus ETFs, and major global indices



Learn more about TradePlus ETFs
+(60) 12 250 8002
TradePlus ETF


Disclaimer: This article has been prepared by Affin Hwang Asset Management Berhad (hereinafter referred to as “Affin Hwang AM”) specific for its use, a specific target audience, and for discussion purposes only. All information contained within this presentation belongs to Affin Hwang AM and may not be copied, distributed or otherwise disseminated in whole or in part without written consent of Affin Hwang AM. The information contained in this presentation may include, but is not limited to opinions, analysis, forecasts, projections and expectations (collectively referred to as “Opinions”). Such information has been obtained from various sources including those in the public domain, are merely expressions of belief. Although this presentation has been prepared on the basis of information and/or Opinions that are believed to be correct at the time the presentation was prepared, Affin Hwang AM makes no expressed or implied warranty as to the accuracy and completeness of any such information and/or Opinions. As with any forms of financial products, the financial product mentioned herein (if any) carries with it various risks. Although attempts have been made to disclose all possible risks involved, the financial product may still be subject to inherent risk that may arise beyond our reasonable contemplation. The financial product may be wholly unsuited for you, if you are adverse to the risk arising out of and/or in connection with the financial product. Affin Hwang AM is not acting as an advisor or agent to any person to whom this presentation is directed. Such persons must make their own independent assessments of the contents of this presentation, should not treat such content as advice relating to legal, accounting, taxation or investment matters and should consult their own advisers. Affin Hwang AM and its affiliates may act as a principal and agent in any transaction contemplated by this presentation, or any other transaction connected with any such transaction, and may as a result earn brokerage, commission or other income. Nothing in this presentation is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities. Neither Affin Hwang AM nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence or negligent misstatement) from any statement, opinion, information or matter (expressed or implied) arising out of, contained in or derived from or any omission from this presentation, except liability under statute that cannot be excluded.

Warning Statement: A copy of the Prospectus / Supplemental Prospectus for the TradePlus Shariah Gold Tracker and TradePlus S&P New China Tracker, the Prospectus for the TradePlus DWA Malaysia Momentum Tracker and TradePlus MSCI Asia Ex Japan REITs Tracker, as well as the Master Prospectus for the TradePlus NYSE® FANG+ Daily (2x) Leveraged Tracker, TradePlus NYSE® FANG+ Daily (-1x) Inverse Tracker, TradePlus HSCEI Daily (2x) Leveraged Tracker and TradePlus HSCEI Daily (-1x) Inverse Tracker (collectively known as the “TradePlus L&I ETFs”) can be obtained at Affin Hwang Asset Management's (“Affin Hwang AM”) website at Investors are advised to read and understand the contents of the Prospectus dated 28 November 2017 and Supplemental Prospectus dated 2 July 2019 (for TradePlus Shariah Gold Tracker), Prospectus dated 15 January 2019 and Supplemental Prospectus dated 2 July 2019 (for TradePlus S&P New China Tracker), Prospectus dated 9 July 2020 (for TradePlus DWA Malaysia Momentum Tracker), Prospectus dated 9 July 2020 (for TradePlus MSCI Asia Ex Japan REITs Tracker), as well as the Master Prospectus dated 26 November 2019 (for the TradePlus L&I ETFs) before investing. There are fees and charges involved when investing in the funds stated herein. Investors are advised to consider and compare the fees and charges as well of the risks carefully before investing. Investors should make their own assessment of the risks involved in investing and should seek professional advice, where necessary. The price of units and distribution payable, if any, may go down as well as up and past performance of the funds should not be taken as indicative of their future performance. The Securities Commission Malaysia has not reviewed this material and takes no responsibility for the contents of this material and expressly disclaims all liability, however arising from this material.

You may refer to the relevant Licensing Disclosure Statement & Conditions at the respective webpages for each fund available on