Market Reports

• News of China cutting tariffs on $75bn US goods and Trump’s impeachment acquittal send US markets to record high.
• Furthermore, the positive news on the coronavirus patients’ recovery rate improved sentiments, nonetheless total numbers continue to rise.
• Regional markets in Asia are expected to take cue from bullish US markets and move higher today.
• Locally, we expect to see continued bargain hunting and news on potential economic stimulus package in the making will further support the recovery of FBM KLCI.
• We remain positive on the tech related stocks such as UWC, Dufu, Notion, JCY, Mi Technovation, Inari (our technical pick today).  

• As expected, there were wild swings in sentiments as investors are now less edgy on the pandemic. Wall Street closed on a record high yesterday which should send positive vibes to Asia.
• Commodity prices also improved as both the crude prices and CPO rebounded yesterday.
• The CPO in particular jumped by almost 6% to close at RM2,850/MT following a sell-down over the past week. We need to see such improved sentiments in a more sustaining manner before acting with conviction.
• Meanwhile, we still consider prevailing market conditions as situational with the broader market environment as fluid. Nonetheless, we anticipate the FBM KLCI to retest the 1,550 mark sooner than later.

• Temporary reprieve amid the coronavirus as authorities are ramping up their efforts to stabilise the jitters. Overnight, Wall Street staged another impressive rebound to lend a hand solidifying market sentiment.

Therefore, we reckon regional uptrend to continue and will spillover to the local bourse as well. All these are very well to check on the downtrend however in reality we are seeing crude oil as well as CPO continuing with their fall.

Brent is currently hovering at US$54 from above US$60 mark only last month. As for CPO, we are hoping for a rapid rebound from current level as a prolonged dip may see a downgrade on the sector.

• All in all, the situation remains rather fluid hence we advocate investors to remain vigilant. The FBM KLCI is expected to see some resistance at the 1,550 level.

• Sentiment remains jittery as we enter yet another trading day clouded by the virus. Wall Street staged an unconvincing rebound yesterday which should see regional markets to remain mixed today.
• Locally we believe it will be another “yo-yo” day with the psychological support level at the 1,500 mark.
• Investors may even opt to take profit on stocks that had performed rather well year to date if the broader market is to continue with the downtrend.

• Coronavirus and Wuhan has taken the steam out of bull of global markets where stronger earnings season from US markets have taken a back seat for the moment.
• All eyes will be on China’s equity market which has reopened today after an extended break.
• On the local front today, market is expected to be selling mode with FBM KLCI’s support level at 1,500. Longer term investors may take the opportunity to bargain hunt on oversold stocks.