Market Reports

Daily Market Report (22 February 2024)
Daily Market Report (22 February 2024)
  • Wall Street closed mixed as the Federal Reserve are not cutting rates anytime soon following a spate of strong economic data of late.
  • Thus, while the DJI Average added 48 points, the Nasdaq lost 49 points as traders are waiting for Nvidia’s latest round of earnings that beat expectations after the closing bell.
  • Meanwhile, the US 10-year yield inched higher at 4.319%.
  • Over in Hong Kong, the HSI continues with its Dragon-rally as it added 255 points as many are expecting more easing on curbs for the property market.
  • The HSI had rallied around 750 points after the Lunar New Year break.
  • Back home, the FBM KLCI eased slightly but off the day low depicting that the local bourse is still well supported at current levels.
  • Hence, following yesterday’s intermittent correction, we believe buyers to return and expect the index to hover within the 1,550-1,560 range today with interests shifting to the Technology and Telcon sectors.
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Daily Market Report (21 February 2024)
Daily Market Report (21 February 2024)
  • Wall Street ended on a weak note as prevailing high valuations remain as the main stumbling block.
  • In addition to the widely expected delay in rate cut, traders are wary if US equities have the legs to trend higher.
  • As such, the DJI Average lost 64 points while the Nasdaq declined by 145 points as the US 10-year yield eased marginally to 4.275%.
  • In Hong Kong, the HSI after a weak opening, rebounded in the afternoon session following the 25bps cut in loan prime rate by Chinese lenders which is higher than initially expected to spur home purchases.
  • At home, the FBM KLCI maintained its impressive performance as it closed above the 1,550 mark.
  • This resembles a mini CNY rally as the index have added more than 40 points during the period.
  • Though an intermittent correction may prevail, we believe the local bourse to sustain this solid performance as we march towards the 1,600 level.
  • It is also heartening to see that retail presence is improving though actual participation is still low.
  • For today, we expect the index to hover within the 1,550-1,560 range.
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Daily Market Report (20 February 2024)
Daily Market Report (20 February 2024)
  • Wall Street was closed for Washington Birthday yesterday and a look at the futures showed that all 3 major indices remained rather flat.
  • Over in Hong Kong, the HSI lost 184 points and halted its Dragon year rally as the Chinese authority kept interest rates unchanged.
  • At the home front, the FBM KLCI continued with its uptrend to close almost the 1,540 mark attributed to some late buying activities.
  • We expect foreign funds to maintain the accumulation of local equities, taking advantage of the low valuations of both stocks and currencies within the SEA region.
  • Though a correction is anticipated anytime soon, we suspect it’s only for a short period hence expect the index to hover within the 1,535-1,545 range today with interests possibly on the Construction and Utilities stocks.
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Daily Market Report (19 February 2024)
Daily Market Report (19 February 2024)
  • Wall Street retreated as hotter than anticipated inflation data spooked traders and that the Federal Reserve may delay the prospect of rate cuts.
  • As such, the DJI Average lost 145 points while the Nasdaq declined by 130 points as the US 10-year yield edged slightly higher at 4.281%.
  • In Hong Kong, the HSI maintained its uptrend by adding 395 points to above the 16,300 level buoyed by buying from local funds on big tech stocks that are deemed cheap at prevailing levels coupled with that the Hong Kong market remains underinvested by foreign funds.
  • Back home, the FBM KLCI closed on an 18-month high as buying by foreign funds continues.
  • In view of the US markets facing with numerous headwinds, it thus understandable that some funds will flow into this region to find some stability.
  • Nonetheless, we noticed retail participation remains low and will improve this week when all are back to work.
  • For today, we expect the index to hover within the 1,535-1,545 range.
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Daily Market Report (16 February 2024)
Daily Market Report (16 February 2024)
  • Wall Street closed on a positive note as all 3 major indices rebounded with the S&P 500 ended on a record high following a drop in January’s retail sales igniting hopes for rates adjustment amid an easing US economy.
  • As such, the DJI Average jumped 349 points while the Nasdaq gained 47 points as the US 10-year yield ended marginally lower at 4.234%.
  • Over in Hong Kong, the HSI added 65 points to almost the 16,000 mark as traders are betting that the Chinese authorities will intervene to shore up investors’ confidence.
  • Back home, the FBM KLCI ended on a flat note attributed to late buying activities, showing that the local bourse is well supported at current levels.
  • As we enter into earnings season, it is without doubt that the banking sector will continue to show decent performance for CY2023.
  • Thus, we expect the index to hover within the 1,530-1,540 range today amid the improving participation from the retail segment as illustrated by the improving daily volume.
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