Daily Market Reports Issued By Rakuten Trade Research : Page 197

Wall Street closed on a high yesterday spurred by easing concerns over the impact of Covid-19.
Though this may boost sentiments regionally, we prefer to remain cautious as such a view could merely be just an illusion.
Locally, the FBM KLCI continue to experience a downtrend as investors are opting for the 10-year MGS at the expense of equities.
Currently, the 10-year MGS yield has dipped to 2.92% which is the lowest since 2004.
Nonetheless, we expect there to be some nibbling on equities today with the FBM KLCI immediate resistance of 1,550 to be tested again.

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Dow Jones were flat while Nasdaq & S&P 500 continued breaking new highs as markets digest Federal Reserve’s Jerome Powell preliminary assessment on the coronavirus impact to US economy and markets.
Donald Trump named the four tech giants Microsoft, Apple, Google and Amazon part of trillion-dollar club MAGA, Making America Great Again.
This is expected to see continued focused on tech sector while regional markets are likely to continue trending higher.
On the local front, FBM KLCI may see continued technical rebound and with resistance level at 1,560 level on the back of proposed stimulus plan by the govt.

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Notwithstanding the coronavirus death toll that has crossed the 1,000 mark, US markets continue its rise on the back of robust earnings result thus far.
However, commodity markets are telling another story as it continues to weaken as demand and outlook seems clouded by the pandemic scare.
Regional markets will continue to be cautious with the focus on the coronavirus dampening sentiments.
On the local front FBM KLCI may see some bargain hunting with support level at 1,530 level.
CPO inventory fell to the lowest level since 2017 and may see trading opportunities in plantation counters today.

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With the virus remains unrelenting, latest job data in the US compounded the already battered confidence as Wall Street succumbed to profit taking activities across the board.
Therefore, we believe regional markets to face with some headwinds today. We expect the local bourse the same with the FBM KLCI seen to dip below its immediate support of 1,550 level.
Meanwhile, we reckon if this pandemic is prolonged, there is a high likelihood that the Feds may look at reducing interest rates again to boost the US economy.

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Major global indices rebounded strongly last week following the heavy equities sell down amid the coronavirus outbreak.
Dow Jones Industrial Average Index gained 702.7 points while Hong Kong’s Hang Seng Index recovered more than 1,000 points to above 27,000 level for the week.
On local front, FBM KLCI finished higher to end at 1,554.5. Weekly foreign funds were negative, posted net outflow of RM258m with year-to-date net outflow of RM396.3m.
There were 25 gainers versus 4 losers in FBM KLCI last week. The performers were Hong Leong Financial Group (+6.93%), CIMB (+6.19%) and AIRPORT (+5.58%). Top 3 losers were TOPGLOVE (-2.08%), GENTING (-1.82%) and PUBLIC BANK (-1.19%).

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