Market Reports

Daily Market Report (26 January 2024)
Daily Market Report (26 January 2024)
  • Wall Street finished higher as data indicated continued economic growth.
  • The DJIA and Nasdaq rose 243 points (0.6%) and 29 points (0.2%) respectively.
  • In Asia, key indices mostly ended higher with strong gains in China and Hong Kong.
  • Sentiment was buoyed by the PRC Government's commitment to providing additional economic support, which is expected to enhance liquidity in the banking system.
  • The PBOC will slash the reserve requirement ratio by 50 basis points, releasing about US$140bn of cash to support the economy.
  • As a result, the HSI rose 313 points or 2% to finish above the 16,000 level.
  • On the domestic front, the FBM KLCI continued to trend higher, added 8 points (0.5%) to finish at 1,504 with broad based buying.
  • We reckon if the index can sustain above the 1,500 level for an extended period, we anticipate stronger potential upwards in the near term.
  • With the improvement of global equities, we anticipate that the FBM KLCI will trend higher within the range of 1,500-1,510 for today.
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Daily Market Report (24 January 2024)
Daily Market Report (24 January 2024)
  • Wall Street closed mixed as profit-taking activities emerged following a mixed bag of corporate earnings.
  • Some traders preferred to remained sideline as recent rally was not broad based thus not sustainable.
  • As such, the DJI Average lost 96 points while the Nasdaq added 66 points as the US 10-year yield inched higher at 4.132%.
  • In Hong Kong, equities rebounded with the HSI ending the day almost 400 points higher.
  • Overall sentiment improved after China’s Premier Li Qiang calls for more forceful stimulus by mobilizing 2 trillion Yuan (US$278 bn) to stabilize the Hong Kong market.
  • Back home, the FBM KLCI managed to add another 5 points to edge closer to the 1,500 mark as accumulation of stocks remained in a controlled manner.
  • We still see the 1,500 mark as a formidable resistance and needs to be broken decisively to maintain the index upward trajectory.
  • Thus, for today, we expect the index to hover within the 1,490-1,500range.
  • Meanwhile, a rebound amongst the stocks in the small caps saga had certainly ease some blood pressure for now but it will be an uphill battle.
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Daily Market Report (23 January 2024)
Daily Market Report (23 January 2024)
  • Wall Street continued with its uptrend as traders largely ignored if the US economy will be able to engineer a soft landing amid a mixed bag of economic indicators.
  • Nonetheless, as all 3 major indices are hovering at their respective all time highs and it will be interesting to see if prevailing fundamentals are able to sustain the rally.
  • Meanwhile, the US 10-year yield ended slightly lower at 4.107%.
  • Over in Hong Kong, the HSI lost further ground as it closed below the 15,000 mark as the sell-down on property stocks gained traction after the PBOC left the loan prime rate unchanged.
  • On the home front, the FBM KLCI ended yesterday’s session firmer following a slow start attributed to some bargain hunting activities.
  • We are hopeful that the index can break the 1,500 level decisively soon in order to maintain the upward trajectory.
  • For today, we believe the index will hover within the 1,490-1,500 range taking the positive cue from Wall Street.
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Daily Market Report (22 January 2024)
Daily Market Report (22 January 2024)
  • Wall Street ended higher as traders chose to focus on the positives namely a solid labour market and robust economy ignoring the fact that the Federal Reserve may prolong prevailing high interest rates environment.
  • Thus, the DJI Average jumped by 395 points while the Nasdaq added 295 points as the US 10-year yield dipped marginally to 4.13%.
  • In Hong Kong, the HSI maintained its weakness as global funds are shunning the market in the absence of any stimulus from China so far despite valuations have fallen to an all-time low.
  • Back home, the FBM KLCI rebounded following a correction from the 1,500 level a week before.
  • Although bargain hunting activities were apparent, market undertone remains cautious with many investors adopting a wait and see attitude.
  • Meanwhile, the contagion from the small caps seems limited to a selected few and may not be as bad as initially feared.
  • For today, we believe the index to hover within the 1,485-1,495 range.
  • Plantation stocks may be in focus today as the CPO has rallied to almost the RM4,000/tonne mark due to demand from China for the forthcoming Chinese New Year.
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Daily Market Report (19 January 2024)
Daily Market Report (19 January 2024)
  • Wall Street closed broadly firmer from bargain hunting activities despite a mixed corporate earnings result coupled with the lower weekly claims for unemployment benefits indicating that the labour market is still robust thus no reason for the Federal Reserve to lower interest rate as yet with the  US 10-year yield inching higher to 4.142%.
  • Over in Hong Kong, the HSI rebounded as the recent sell-down may have been overdone.
  • On the domestic front, the FBM KLCI maintained its downtrend as it closed just below the 1,480 level.
  • We deem the selling had been excessive as fundamentals were all largely intact.
  • Nonetheless, overall sentiment may have been affected by MACC’s move to investigate some political heavyweights and hopefully a rebound is happening soon, hence we expect the index to hover within the 1,480-,1490 range today.
  • Meanwhile, the bloodbath amongst a selected group of small caps may persist as the contagion is spreading which will impact overall trading participation of retailers over the immediate term.
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