Daily Market Reports Issued By Rakuten Trade Research : Page 195

It is going to be another interesting day for regional equities following Wall Street continuous decline last week. We reckon there would be more volatility ahead as sentiments has turned extremely cautious now.
Treasuries are currently at record lows with the US 10-year yield now at 1.11% thus we would expect foreign funds to U-turn back to Asia seeking for safer havens with reasonable yields like Malaysia with its 10-yield hovering at 2.83%.
As such, MYR is set to strengthen vis-à-vis the US$. Meanwhile the FBM KLCI is expected to test the 1,470 today after which the 1,450 would be the next support level.

Download

We are certainly into a correctional phase with the bottom remains unknown. Yesterday’s drastic decline on Wall Street has definitely changed the landscape from cautiously positive to now negative.
Unless there is a sharp immediate uptick, we reckon the selling to persist for equity markets. Already the US 10-year yield has hit an all-time low with investors scurrying for safer havens.
However, we may see some inflows of foreign funds into regional treasuries thus expect the MYR to strengthen against the greenback.
Meanwhile, we believe the FBM KLCI to break the 1,500 mark today with 1,470 as the immediate support. We would advocate investors to hold cash with the possibility to bargain hunt eventually.

Download

US markets which have taken a beating for the past week will certainly play a part on the regional markets as sentiments remains jittery as Covid-19 numbers continue to grow outside China.
On the local front, the market will largely be focusing on the political updates hence sentiment could be muted hovering around the 1,500 level. Investors should adopt a buy on weakness strategy for trading purposes.

Download

Looks like investors are abandoning all asset classes with many reverting back to “cash is king” status. Wall Street in particular, is looking vulnerable due to its high valuations propped up by the abundance of liquidity.
We believe the ongoing correction of US stocks are not done as yet hence foresee regional markets to remain jittery.
Locally, the local bourse is seen to be on a downside bias despite yesterday’s 10 points gain. We stick to our expectations that the FBM KLCI could break the 1,470 level and advise investors to accumulate on weakness.

Download

Regional markets spiralled downwards on fears of the Covid-19 aggression. Wall Street was also spooked by the pandemic as the DJI index slumped over 1,000 points yesterday. The local bourse also declined but predominantly due to our internal political scenario.
All in all, it will be another devastating day for equity markets today as we expect there to be more sell-down. Malaysia not only saw a sell-down on equities as bonds also suffered. As a result, the MYR closed at a 2-year low of RM4.22/US$1.
In view of this, we can expect more selling on the local bourse today with the FBM KLCI expected to test the 1,470 level thereafter the 1,450 mark.

Download

Market Reports