Global equities were dominated by the US Fed’s hawkish stance in August, bringing all major indices into the red as investors expect more rate hikes. News flow in China were a mix of good and bad, which saw equities in China ending on a mixed note. However, the New Economy Sectors fared better than the broader market as encouraging news on the potential delisting of ADRs boosted equities. Local equities also had a good month on the back of further economic reopening, while news of Najib Razak’s conviction in the federal court dominated headlines. In commodities, gold prices continued to slide following hawkish sentiment from the US Feds.


In the News

  • Global market sentiment was dominated by the US Federal Reserve’s reiterated stance to curb inflation pressures in the US, even if it means hurting business and consumers in the short run.
  • Despite rising rates, macroeconomic data in the US continues to show signs of growth, further solidifying the Fed’s stance to continue its monetary tightening route.
  • All major US indices slid into the red last month, with the broader S&P 500 Index outperforming the tech-heavy Nasdaq Composite, as the former dipped 3.68% in MYR terms while the latter slid 4.08% in MYR terms.
  • The FANG+ Index fared batter than broader market indices, only dipping 3.27% in MYR terms over the month, bringing the -100% exposed 0831EA up by 3.52%.
  • August was an eventful month for China, as geopolitical tensions, power shortages, the ongoing property woes, and its zero-COVID policies brought on market volatility.
  • More notably, US House Speaker Nancy Pelosi’s controversial visit to Taiwan re-sparked geopolitical tensions between the world’s two largest economies.
  • In New Economy Sectors, things seem to be looking up as Beijing reached an agreement allowing US auditors to inspect China based accounting firms, signalling a positive step to prevent the delisting of ADRs.
  • Over the month, the S&P New China Sectors index fared better than its broader peers, gaining 1.78% in MYR terms, while the 0829EA also saw gains of 1.32%.
  • In the broader market, the Shanghai Composite Index and the CSI 300 Index slid 3.09% and 3.70% respectively.
  • Outside of China, Asian bourses continued to see positive momentum following continuous economic recovery activities. 
  • Local new headlines were dominated last month with the conviction of former prime minister Najib Razak in federal court, becoming the first prime minister in the country’s history to serve jail time.
  • The broader FBM KLCI Index upped 1.33%, while the DWA Technical Leaders Malaysia Index fared better with gains of 3.24%. The 0836EA subsequently upped 3.12% in August.
  • Commodity prices continued to slip, with crude oil prices in the lead with losses of 8.66% in MYR terms last month.
  • Gold prices also maintained its downwards trend on the back of rising rates and the Fed’s hawkish stance, dipping 2.07% over the month. However, the 0828EA is still seeing 3.03% gains YTD.


On the Economic Data Front

Growth indicating macro data supports US Fed’s hawkish stance:

  • US CPI for July remained unchanged month-on-month, but eased more than expected on an annual basis.
  • 528,000 jobs were added in July, surpassing estimates of 250,000 and well above June’s reading of 398,000.
  • Unemployment rate slid to 3.5%, while wage growth rose by 5.2%.

China macro data shows weakness amid multiple headwinds:

  • Official non-manufacturing PMI contracted to 5.26 in August, amid COVID case spikes.
  • Official Manufacturing PMI rose marginally to 49.4 from 49 in July.
  • Exports grew by 7.1% y-o-y in August, but was far from July’s 18% growth reading; dragging the yuan exchange rate against the USD lower.


ETF Strategies at TradePlus


A look at the performance of TradePlus ETFs


Learn more about TradePlus ETFs
+(60) 12 606 8685
TradePlus ETF


Disclaimer: This article has been prepared by AHAM Asset Management Berhad (“AHAM Capital”) specific for its use, a specific target audience, and for discussion purposes only. All information contained within this presentation belongs to AHAM Capital and may not be copied, distributed or otherwise disseminated in whole or in part without written consent of AHAM Capital. 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, AHAM Capital 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. AHAM Capital 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. AHAM Capital 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 AHAM Capital 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 (“AHAM Capital”) 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