Market Reports

Daily Market Report (12 Jan 2021)
Daily Market Report (12 Jan 2021)
  • Wall Street closed lower as traders suddenly became wary of the US equities high valuations prompting profit taking activities.
  • As a result, the DJI Average was down by almost 90 points to remain just above the 31,000 mark. Thus, we expect regional markets to see some easing today after a mixed performance yesterday.
  • On the local front, we expect the FBM KLCI to trend lower following announcements of lockdown 2.0 on several states yesterday.
  • As such, we reckon the index to possibly test the 1,610 mark with 1,600 being a more solid support level. Nonetheless, we believe performance of the smaller caps to improve following bouts of corrections over the last few days hence trading volume is seen to improve.

 

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Daily Market Report (11 Jan 2021)
Daily Market Report (11 Jan 2021)
  • US equities closed higher after a volatile session as traders are hopeful of another stimulus package amid the disappointing US job data.
  • The DJI Average edged up 57 points to close at almost the 31,100 mark while the Nasdaq ended the session on a record high at around the 13,200 level. Nonetheless, we expect regional markets to be mixed today in view of the unpredictable Wall Street.
  • Back home, we expect the FBM KLCI to experience some weaknesses today amid the surging Covid-19 cases. Thus, we expect the benchmark index to trend lower today potentially testing the 1,620/25 levels.
  • On a more positive note, crude oil prices continue to climb with the Brent now hovering above the USD56/barrel.
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Daily Market Report (8 Jan 2021)
Daily Market Report (8 Jan 2021)
  • US stocks surged as Congress confirmed Biden as the US next president pushing all major indices to record highs.
  • The DJI Average broke the 31,000 mark while the Nasdaq surpassed the 13,000 level as funds continue to flow into equities at the expense of bonds.
  • With this, we believe regional markets to trend higher today as foreign funds are now also flowing into emerging markets.
  • Domestically, the FBM KLCI which saw rather strong buying support yesterday to above the 1,600 threshold will continue to climb potentially testing the 1,610 level today.
  • Nonetheless, investors are still wary of the government’s stance of a possible lockdown may curtail further advancement.
  • Meanwhile, as crude oil prices remain on a recovery mode with the Brent hovering above USD54/barrel, oil & gas stocks may be ripe for some trading interests.
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Daily Market Report (7 Jan 2021)
Daily Market Report (7 Jan 2021)
  • Despite protestors storming Capitol Hill, Wall Street surged to an all time high amid hopes of additional stimulus for the pandemic relief package.
  • The DJI Average rose 438 points to close above the 30,800 level. With Biden controlling the Senate as well, traders are hoping the US recovery process would be faster which should boost the regional markets today.
  • As for the local bourse, the situation is more complicating with rumours of possible lockdown for certain states coupled with a general election.
  • Hence, we reckon the FBM KLCI which was sold down rather heavily yesterday may see some road bumps ahead. Nonetheless, we expect some bargain hunting to emerge thus expect the index to trend within the 1,585/1,600 range.
  • Meanwhile, the crude palm oil futures had breached the RM4,000/metric tonne while the Brent crude closed higher at USD54.30/barrel following decline on the supply side.
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Daily Market Report (6 Jan 2021)
Daily Market Report (6 Jan 2021)
  • US stocks recovered as buyers emerged on the back of better economic data and hopes for a speedy US economic recovery.
  • The DJI Average gained 168 points after earlier losses to close at almost the 30,400 level.
  • Nonetheless, sentiments remain tepid as many are also waiting for the results from Georgia’s runoff election.
  • On the local front, we believe the FBM KLCI to edge higher today on the back of improving crude oil prices and expect the index to hover within the 1,610/15 range amid the volatile glove counters.
  • For today, we expect buying interests could shift to the Oil & Gas stocks following the improvements of crude oil prices with the Brent crude now moving closer towards the USD54/barrel.
  • Some of the O&G stocks to look out for are Hibiscus, Reach, Uzma, KNM, Reservoir Link, and Serba Dinamik.
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