Market Reports

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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Daily Market Report (5 Jan 2021)
Daily Market Report (5 Jan 2021)
  • Surging global coronavirus cases plus the runoff election in Georgia had traders pressing the panic button as Wall Street experienced heavy sell-down on the first day of 2021.
  • The DJI Average which dipped below the 30,000 mark at one point recovered in late session to close around 30,220 or 380 points lower. In view of this, we reckon regional markets to be mixed today.
  • On the local front, we expect the FBM KLCI to remain volatile impacted by high volatility amongst the glove counters. Therefore, the benchmark index to possibly hover within the 1,590/1,600 range today with 1,590 being the immediate support level.
  • On a brighter note, the Ringgit is now at a 52-week high against the USD now hovering at RM4.00/USD1. We would expect the Ringgit to continue strengthening to around the 3.80 level this year.
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Daily Market Report (4 Jan 2021)
Daily Market Report (4 Jan 2021)
  • Wall Street ended 2020 with a bang as major indices closed on record highs. The DJI Average jumped by almost 200 points to close above the 30,600 mark.
  • Nonetheless, we reckon regional markets may be subdued as global pandemic cases surged with some countries are looking at further lockdowns.
  • Meanwhile, we expect the local bourse to see a weaker opening as well from the lack of catalysts with the US futures remains flat.
  • Therefore, we see the FBM KLCI to possibly test the 1,620/25 range today. News of the termination of the High Speed Rail (HSR) may prompt some selling on the construction and building material stocks today.
  • On the bright side, the ringgit continues with its strengthening against the USD now at RM4.02 which is positive to importers namely the auto stocks.
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