Daily Market Reports Issued By Rakuten Trade Research : Page 194

Another day, another potential bloodbath. Following the steep fall on Wall Street overnight, we expect regional markets to experience another selling-down today.
The domino effect has already started as investors sentiments is now even more jittery.
Locally, notwithstanding the new Cabinet announced yesterday we believe the unloading of equities to persist.
As such, we reckon the FBM KLCI to break the 1,400 level today with the next support at the 1,380/90 levels.

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It is going to be another volatile day for regional equity markets. Crude oil price had slumped to a multi-year low with the Brent now at below US$40/barrel.
The US 10-year Treasury yield is also at an all-time low of 0.52% as all seems rather bleak at this juncture. We noticed some funds are already heading towards safe haven like Gold which is now trending towards the US$1,700/oz and could see more upside nearing its high of US$1,900/oz.
Looking ahead, we expect prevailing consolidation to continue with more downside for the equity markets. Locally, we expect the FBM KLCI to experience some selling pressure albeit not much as foreign shareholding is already at an all-time low.
Immediate support is expected at the 1,470 level.

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US markets remains volatile as wide swings between 1,000 point is becoming a norm recently suggesting mixed signals and expectations. The US 10-year Treasury yield fell below 1% to a record low as investors look for safe haven.
Regional market is expected to be in the red today taking cue from the US markets. Domestically, we expect the FBM KLCI to remain range bound within 1,480 to 1,500 level.
There are ample opportunities for investors for deep value rebound play on oversold stocks such as Genting Malaysia featured in our technical view today.

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US markets stage a strong rebound with Dow Jones rising over 1,000 points shrugging off the rise of Covid-19 cases globally as IMF has announced US$50bn aid package to combat Covid-19 pandemic. Meanwhile, China continues to see drop in Covid-19 cases.
The concerted efforts by major central banks globally have managed to calm the markets as US markets have recovered out of “correction territory”.
Regional markets will follow suit and on the local front, we expect the FBM KLCI to open firmer with 1,480 being the support level and possible moving to back to 1,500 level. Investors and traders should take the opportunity to position themselves for rebound play on oversold stocks.

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US FOMC held an emergency meeting yesterday slashing rates by 50 basis point with markets reacting positively initially before falling again as the Covid-19 remains the key drag to the global economic growth.
On the bright side, there are concerted efforts by major central banks around the world that working to reassure their commitment to provide stability and cutting rates to bolster the economy.
On the local front yesterday BNM have also cut rate by 25 basis point bringing a total 50 basis point cut for the year. We would expect the FBM KLCI to remain volatile with 1,460 being the support level. Investors and traders may look to bargain hunt oversold stocks for rebound play.

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