Daily Market Reports Issued By Rakuten Trade Research : Page 190

Amid the dwindling crude oil prices, attention is now shifted to the reopening of the US economy as Wall Street continues with its uptrend with the DJI Average finally closed above the 24,000 mark.
Notwithstanding this, we find it rather uneasy as the US remains the apex contributor to the global Covid-19 figures.
We reckon regional markets may undergo a mixed trading pattern today as sellers would take advantage of any uptrend.
Domestically, we expect the FBM KLCI to trend between the 1,360/80 levels today and continue to advise investors to be cautious as sentiments remains highly jittery.

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Wall Street trended firmer last Friday on the pretext that crude oil prices are stabilising.
However, all is not that rosy as US unemployment rate has spiked up to 4.4% so far in April from 3.5% at the beginning of this year.
Therefore, we foresee equity markets to remain shaky as the regional indices may be stuck within a consolidation phase.
On the local front, the FBM KLCI that has been rather resilient succumbed to the selling hence closed the week on a weaker note.
We expect the lack of indicators may see the index to trend lower to test the weak support of 1,360 as investors may want to stay sideline for now.

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Trading pattern over on Wall Street has been erratic to say the least as traders are having a field day with equities thus far.
As expected, following the sell-down on Tuesday, the DJI Average recouped most of its losses by closing 450 points higher as if everything has stabilised.
As such, we reckon regional markets may start the day on a positive note but may close off highs as many would prefer to lock in some profits.
Locally, the FBM KLCI continued with its resilience to close above the 1,380 level yesterday.
As for today, we expect the index to hover between the 1,370/90 levels with some downside bias.

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There is no place to hide as almost all asset classes are being affected by the chaotic situation from both Covid-19 and crude oil prices alike.
Therefore, we would expect market correction to continue today as displayed by the broad base decline on Wall Street overnight.
The 630 points drop by the DJI Average should put some pressure on regional markets. On the local front, the FBM KLCI should see selling to persist today with the 1,370 as the immediate support level.

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Finally, the correction that we have been anticipating should happen today.
With crude oil doing something unprecedented where its May futures went negative, Covid-19 in the US remains unrelenting.
As a result, the DJI Average declined by almost 600 points in a volatile late session yesterday.
As such, we expect regional markets to experience some selling across the board today.
On the local front, the FBM KLCI which have had surprised many of late will see some downside pressure today with immediate support level at the 1,400 mark.
Though trading opportunities still prevails we still advise investors to exercise caution.

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