Market Reports

Daily Market Report (9 February 2024)
Daily Market Report (9 February 2024)
  • Wall Street maintained its uptrend as all 3 major indices closed in positive territory amid concerns that it may be unsustainable.
  • The DJI Average added 49 points while the Nasdaq gained 37 points as the US 10-year yield inched higher at 4.158%.
  • Nonetheless, traders are worried that the current rally may not be supported by the fundamentals.
  • Over in Hong Kong, the HSI slumped below the 16,000 mark after China’s consumer price index for January fell steeper than anticipated.
  • Back home, the FBM KLCI continues with its consolidation as it ended flat due to some profit taking ahead of the extended CNY break next week.
  • Nonetheless, we noticed foreign buying remains rather apparent hence believe the local bourse is well supported at current levels.
  • For today, we expect the index to hover within the 1,510-1,520 range.
  • Meanwhile, crude oil prices increased as the Gaza conflict intensifies with the Brent crude trending at almost US$82/barrel currently.
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Daily Market Report (8 February 2024)
Daily Market Report (8 February 2024)
  • Wall Street rallied underpin by robust corporate earnings and guidance especially from the tech mega caps illustrating healthy consumer spending amid a resilient US economy.
  • As such, the DJI Average added 156 points while the Nasdaq gained 148 points.
  • On the flipside, the Federal Reserve may not adjust interest rates lower anytime soon with the US 10-year yield inching higher at 4.115%.
  • In Hong Kong, the HSI retreated slightly amid some profit taking activities following a sharp spike up the day before.
  • Nonetheless, traders are confident that market sentiment to stay strong attributed to strong corporate earnings especially from Alibaba.
  • Back home, the FBM KLCI ended flat as overall sentiment remains cautious.
  • We noticed daily volume traded has shrunk to previous levels averaging around 3bn shares depicting the lack of trading interests especially from the retailers.
  • However, as buying from foreign funds continues, this hopefully may cascade down to the smaller cap stocks.
  • For today, we expect the benchmark index to hover within the 1,510-1,520 range.
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Daily Market Report (7 February 2024)
Daily Market Report (7 February 2024)
  • Wall Street ended higher as traders are assessing the latest batch of corporate earnings and the Federal Reserve’s timeline of easing interest rates which will be later than the highly anticipated March.
  • As a result, the DJI Average jumped by 141 points while the Nasdaq added 11 points with the US 10-year yield easing to 4.09%.
  • Over in Hong Kong, the HSI rallied to close 627 points higher at above the 16,000 level amid interventions from China’s sovereign fund coupled with new curbs on short selling activities.
  • At the home front, the FBM KLCI closed in positive territory following a rather volatile afternoon session illustrating a strong market undertone.
  • Despite the persistent buying from foreign funds, we noticed that retail participation may have dried out as depicted by the lower daily volume of late.
  • Nonetheless, we are confident that funds flowing into the blue chips will eventually spill over to the smaller caps plus the positive intervention from China in shoring up both the Chinese and Kong Kong markets.
  • Thus, we expect the index to hover within the 1,510-1,520 range today.
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Daily Market Report (6 February 2024)
Daily Market Report (6 February 2024)
  • Wall Street ended lower after the US 10-year Treasury note was gained more than 13 basis points to 4.166% as investors assessed a fresh batch of strong economic data that suggested rates may stay elevated for longer than anticipated.
  • The Dow dived 274 points (0.71%) while the Nasdaq erased 32.3 points (-0.2%).
  • In Asia, major indices closed lower as the better-than-expected US job report diminished any possibilities of an immediate interest rate cut by the Fed.
  • The HK market ended lower with selling on real estate and tech stocks.
  • The HSI fell 23.5 points (0.15%). 
  • On the domestic front, the FBM KLCI finished lower due to profit taking activities.
  • Nonetheless, we interpret this as a positive correction, enabling the market to absorb the recent rally.
  • We expect the buying on local stocks to continue given the attractive valuations and persistent support from foreign funds.
  • As such, we anticipate the benchmark index to trend within the range of 1,510-1,520 for today.
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Daily Market Report (5 February 2024)
Daily Market Report (5 February 2024)
  • Wall Street finished higher on strong tech earnings while January jobs report came in much better than expected.
  • The Dow rose 135 points (0.35%) while the Nasdaq surged 267 points (1.7%).
  • In Asia, key indices closed higher following positive cue from global equities overnight.
  • However, HK stocks in HK remained under pressure due massive selling on real estate stocks.
  • As a result, the HSI fell 33 points (0.2%). 
  • As for the local bourse, the FBM KLCI closed below its day-high due to late selling.
  • Nonetheless the benchmark index was able to finish on a positive note.
  • We reckon the market undertone is still cautious due to the increasing global volatility, however, the valuation of the FBM KLCI remains attractive, trading at CY24 forward PER of 14.5x against its 5-year average of 17x.
  • Thus, we anticipate the benchmark index to trend within the range of 1,510-1,520 for today.
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