Investors Sell Tech Stocks, Flows Remain Positive Over The Week

• China equity market flows have been mixed over the past week, Thursday saw an inflow of 8b yuan to take the total for the past 5 trading sessions to 2.5b yuan, with the CSI300 up 1.12% over the same period, and is on track to close the week above the 200-day EMA, a level which we haven't been able to hold above since August 2023. Looking ahead to the coming week CPI is due out on Saturday, with consensus at 0.2%, up from 0.1% in March and Industrial Production and Retail Sales on Friday. The 5-day average has ticked down this week now hovering at 0.50b, now below the 20-day average at 1.2b and the 100-day average at 0.81b.
• South Korean equities were one of the worst performers on Thursday, as foreign investors turned net sellers of shares. There wasn't any clear sign as to what caused the sell off, with speculation investors were booking profits after the Kospi had recently rallied 7.50% from Apr 19 lows and was nearing yearly highs. Flows have been largely positive over the past week, with a net inflow of $914m, the 5-day average is $182m, above the 20-day average of $76m but in line with longer term trends and the 100-day average at $183m.
• Taiwan equities were lower Thursday, with foreign investors offloading stocks. Thursday marked the first session in over a week where investors were net sellers, with the total inflows for that period $810m. There is nothing on the data calendar for Taiwan this coming week, with flows largely dependent on global semiconductor prices. The 5-day average is now $162m well above the 20-day average of -$222m and the 100-day average at $61m.
• Philippines equities have now marked seven straight days of selling from foreign investors for a total net outflow of $358m for that period. On Thursday, the PSEi fell 1.75% after 1Q GDP missed estimates and came in at 5.7% vs 5.9% expected, while 4Q GDP was revised down to 5.5% from 5.6%, the fall caused the index to break back below all major moving averages, a prolonged hold below the 200-day EMA could signal a retest of the yearly lows at 6,400. The 5-day average is now -$14m, vs the 20-day average at $22m and the 100-day average of $3.5m
• Indonesian equities markets are closed Today and were closed on Thursday, however looking back over the past week, foreign investors were net sellers of $401m with no days of inflows, this follows the prior 20 days where we saw just two days of inflows. The JCI has largely been able to hold above the 200-day EMA, however on Wednesday we closed just below it. Other regional equity markets have traded weaker into the end of the week which could signal further downside for the JCI when markets reopen on Monday. The 5-day average is now -$80m, the 20-day average is -$72m, while the longer term 100-day average is $6m.
• Malaysian equity markets have been the top performer in the region, making new all-time highs during the week, flow wise foreign investors have been net buyers over the past week with a total net inflow of $280m. The 5-day average is $56m well above both the 20-day average at $3.16m and the 100-day average at $1.1m
• India equity markets were lower over the week, with a 1.55% sell-off in the Nifty 50 on Thursday, equity flow data is a couple of days lagged out of India, but the trend over the past week or so has been negative, with foreign investors selling $608m of equities. The Nifty 50 failed to break above yearly highs on May 3rd, having since turned lower and now eyes a test of the 100-day EMA, a level we have not traded below since Oct 2023. the 5-day average is now $121m, below the 20-day average of -$86m and the 100-day average of $45m.

Table 1: EM Asia Equity Flows