Market Reports

• Wall Street rebounded as traders emerged on hopes of another stimulus package plus improved corporate earnings.
• The DJI Average climbed 116 points to inch closer to the 31,000 mark with the Nasdaq up by 200 points to almost 13,200.
• Thus, we expect regional markets to trend higher today and as for the local bourse, we believe the FBM KLCI to remain volatile until Bank Negara announces their move on the Overnight Policy Rate (OPR).
• Therefore, we reckon the index to trend between the 1,600-1,615 levels today. With regards to the OPR, market is leaning towards a 25bps cut but we remain stubborn with a no cut stance.

Wall Street was closed yesterday but Biden’s inauguration on Wednesday may spur some buying interests going forward. Already the DJI Average futures is trending at positive levels.

As such, we reckon regional markets to perform better today after several days of lacklustre performance. On the local front, we believe the FBM KLCI to rebound after the decline due to expectations of cut in OPR (overnight policy rate) when Bank Negara meets this Wednesday.

Personally, we expect the OPR to be maintained as the impact is rather muted at this juncture. Meanwhile, we see Tan Sri Muhyiddin additional aid for the people’s welfare is positive esp. the tourism related segments and the RM100m for private hospitals for Covid-19 treatment but the discount to certain business sectors may have marginal negative effects on Tenaga.

Nonetheless, we expect the index to re-test the 1,620 level today.

• Intensifying lockdowns and weak US economic data have had pushed Wall Street lower as funds shifted to US Treasuries.
• Thus, the DJI Average lost 177 points lower at just above the 30,800 level while the Nasdaq closed below the 13,000 mark.
• Therefore, we would expect regional markets to remain mixed today.
• On the local front, we believe the FBM KLCI to be listless today from the lack of clear catalysts hence expect the index to trend possibly within a narrow range of between 1,620/30 levels.
• We would be buyers if the benchmark index dips below the 1,600 level.
• Meanwhile, we reckon logistics companies to be on investors radar soon as we reckon these companies to benefit substantially from the new norm of shopping and storage.

• Wall Street retreated as traders stay sidelined awaiting for more details on the latest US relief package.
• As such, the DJI Average declined 69 points to close just below the 31,000 level whilst the Nasdaq also declined to end below its record high. We reckon regional markets to be steadier today following the after market unveiling of the US$1.9 trillion stimulus package.
• On the local front, we expect the FBM KLCI to trend higher today potentially challenging the 1,645 level supported by fresh inflow of foreign funds.
• Meanwhile, Brent crude price rebounded to above the US$56/barrel again putting hopes on some trading interests for the Oil & Gas counters again. Tech stocks will continue to attract interests and would advise investors to look at the laggards.

• Wall Street were mixed amid recent record run as traders remain sidelined. The DJI Average closed flat at 30,060 with the tech heavy Nasdaq closed 56 points higher at almost the 13,130 mark.
• As a result, we reckon regional markets to continue to be mixed. Domestically, we expect the FBM KLCI to trend at a narrow range along the 1,630/40 range today due to the lack of catalysts.
• Yesterday’s strong buying on banks stocks could be a sign that foreign funds may be trickling into the local bourse following an inflow of around RM750m since 7^th January.
• Meanwhile, we remain positive on heighten trading activities amongst the smaller caps today.