Market Reports

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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Daily Market Report (30 Dec 2020)
Daily Market Report (30 Dec 2020)
  • Wall Street closed lower as profit taking activities emerged after all the major indices opened on fresh record highs. The DJI Average closed 68 points lower to end the session at 30,335 level.
  • As such, we expect regional markets to be rather mixed today. Domestically, we believe the FBM KLCI may continue to be weigh down by selling activities on rubber gloves stocks thus expect the benchmark index to test its immediate support of 1,630 today.
  • Meanwhile, the extension of vehicle sales tax exemption by another 6 months may induce some buying interests on Auto stocks with DRB Hicom as our favourite (see our technical report today).
  • Also, Kim Loong’s latest quarterly earnings had more than doubled due to higher CPO prices may be the start of positive developments to come for the rest of the planters.
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Daily Market Report (29 Dec 2020)
Daily Market Report (29 Dec 2020)
  • Wall Street cheered as Trump relented as he finally signed the US$900bn stimulus bill averting a government shutdown.
  • As a result, the DJI Average jumped 204 points higher to close on a record high at around the 30,400 level and could possibly help push the regional markets higher today.
  • On the local front, we believe the FBM KLCI to potentially trend higher today with the 1,650/55 as the immediate resistance levels.
  • Again, we reiterate that the crude palm oil prices remained relatively solid hovering at the RM3,800/metric tonnes level hence buying may persist on the laggards amongst the plantation sector.
  • As mentioned, logistics companies which has been under the radar for now may see some buying soon.
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Daily Market Report (28 Dec 2020)
Daily Market Report (28 Dec 2020)
  • Wall Street ended slightly higher as traders were mostly sidelined ahead of the festivities amid the delay in the latest U.S. stimulus package. The DJI Average was up 70 points to close the session at 30,200.
  • Therefore, we reckon regional markets to be mixed today from the lack of buying catalysts. As for the local bourse, we believe market to be slightly quiet during the final trading week for 2020.
  • We expect the FBM KLCI to continue with its mini consolidation today with the index to trend within the 1,635-1,650 range.
  • Meanwhile, crude palm oil prices are set to close on a year high for month December as it is hovering around the RM3,700/metric tonne level.
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