Daily Market Reports Issued By Rakuten Trade Research : Page 193

We believe many is still underestimating the impact from Covid-19 as we are near to a global lockdown.
As expected, Wall Street succumbed to more selling and closed almost 1,000 points lower last Friday.
As a result, we would expect regional markets to remain volatile with some downside bias today.
Though the FBM KLCI was up rather impressively last week, we would expect some selling pressure today with immediate support at 1,250 thereafter at the 1,220 mark.

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Wall Street rebounded yesterday but we remained unimpressed. With the quadruple witching due tonight for US options, market volatility is expected to heighten.
As such, many may view yesterday’s market stability as temporary. As a result, we would expect regional markets to remain volatile with some downside bias today.
Locally, we continue to see selling with immediate support at 1,200 for the FBM KLCI despite the 1% cut in SRR by Bank Negara yesterday.
The only saving grace for the market is that crude price rebounded with the Brent surpassed the US$30/barrel.

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Nowhere to hide as one can expect another rout for the regional markets today following the trashing on Wall Street.
We believe investors are reverting to “cash is king” as even the US treasuries were sold down as well. The US 10-year yield climbed from a low of 0.7% a few days ago to now around 1.2%.
Locally, we may see more downside bias for the FBM KLCI with 1,220 as the immediate support after which the 1,200 would be the psychological support level.

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Wall Street rebounded rather strongly overnight following news of a huge injection of liquidity by the Feds. Nonetheless, we remain unconvinced if this a solution to the prevailing market situations.
Though we can expect some rebound today, we would prefer to stay cautious and again advocate to sell into strength.
Locally we anticipate the FBM KLCI to possibly retest the 1,280 level today with the support seen at 1,250.

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It will be another eventful day for the equity markets regionally. With Wall Street trashed yesterday, we believe a regional bloodbath is inevitable.
Locally we expect to see more downside pressure on the FBM KLCI and expect the next support at the 1,200 mark.
We do not think this is the time to bargain hunt yet as sentiments remain highly fragile.

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