Market Reports

Daily Market Report (22 Feb 2021)
Daily Market Report (22 Feb 2021)
  • Wall Street ended flattish last Friday as traders are pondering on possible higher interest rates amid the hike in US 10-year treasury yield to 1.34%.
  • The DJI Average remained at 31,494 having touched a day high at almost 31,650. Therefore, we reckon performance of regional markets to be rather muted today.
  • As for the local bourse, we believe sentiments will be boosted by news of the Covid-19 vaccine availability but may see performance to be negated as glove counters may see continue selling as a result.
  • As such, we reckon the FBM KLCI to experience some strong resistance at the 1,590 level today.
  • Crude oil price remains rather resilient at US$63/barrel as the gradual global recovery continues to support demand.
Download
Daily Market Report (19 Feb 2021)
Daily Market Report (19 Feb 2021)
  • Wall Street retreated on weaker than expected job data as traders took profits following recent record breaking performances.
  • Nonetheless, all three major indices closed off their respective lows on news of more stimulus. Meanwhile, the local bourse continued with its decline again due to late selling dragged by regional weaknesses.
  • Sentiments remained jittery as there are no clear buying catalysts thus, we reckon the FBM KLCI to trend within the 1,575/80 range today.
  • However, we noticed that interests on the smaller cap stocks remained rather strong as retailers continued to dominate trading activities.
Download
Daily Market Report (18 Feb 2021)
Daily Market Report (18 Feb 2021)
  • US equities were quite mixed amid a volatile session yesterday. Buying interests only emerged after the Feds reiterated their stance on maintaining interests rates low indefinitely.
  • While both the S&P 500 and Nasdaq eased into negative territory, the DJI Average climbed 90 points to close on another record high surpassing the 31,600 mark.
  • On the local front, the FBM KLCI experienced some profit taking yesterday especially on the banks. Nonetheless, we reckon buying interests should return today to test the 1,600 level as both the crude oil and crude palm oil prices surging to multi months high.
  • The Brent crude is closing in on our US$65/barrel target as funds are shifting towards commodities for easy money amid the recovery process.
  • Crude oil price is benefitting particularly from the cut on the supply side plus current cold spells in some countries. For February alone, Brent crude price has improved by 17%.
Download
Daily Market Report (17 Feb 2021)
Daily Market Report (17 Feb 2021)
  • Wall Street took a breather as rising bond yields kept traders sidelined on concerns of possible higher borrowing costs.
  • Whilst both the S&P 500 and Nasdaq ended lower, the DJI Average closed 64 points higher to fresh record high at above the 31,500 mark.
  • On the domestic front, while the FBM KLCI again succumbed to late selling activities especially on the glove counters, we noticed that funds are shifting to smaller cap companies.
  • Though the FBM KLCI may see some recovery possibly to above the 1,610 level, surging trading volume is indicative that retailers are back in force.
  • We expect interests to remain on Oil & Gas stocks with the Brent crude staying above the US$63/barrel.
Download
Daily Market Report (16 Feb 2021)
Daily Market Report (16 Feb 2021)
  • Wall Street was closed for President’s Day yesterday. Nonetheless, optimism on US equities remain high with all three major indices futures currently trading at positive territory with the DJI Average futures now almost 180 points higher.
  • Thus, we expect regional markets to trend higher today buoyed by sustained buying momentum. On the local front, yesterday’s uptrend was broad-based hence we believe liquidity to continue playing its part to support the FBM KLCI today.
  • Therefore, we reckon the index to breach the 1,615 level today which formed a formidable resistant yesterday.
  • We could be in for a post Chinese New Year Rally.
  • Meanwhile, crude oil prices and Crude palm oil prices continue to stay solid with the Brent staying lose to the US$64/barrel while the CPO is hovering near the RM4,000/metric tonne.
Download