Market Reports

Daily Market Report (5 December 2023)
Daily Market Report (5 December 2023)
  • Wall Street finished lower due to profit taking activities on big tech stocks.
  • Moreover, concerns among investors about an escalation in the conflict between Israel and Hamas have the potential to disrupt the outlook for the Middle East, possibly causing crude oil prices to surge and leading to an increase in inflation.
  • The DJIA eased 41 points or 0.11% while the Nasdaq fell 120 points or 0.84%.
  • In Hong Kong, the HSI slumped 184 points of 1.1% due to regional weakness amid the high tension in the Middle East.
  • On the home front, the FBM KLCI closed lower as investors exercised caution in response to the regional weakness.
  • Despite this, we prefer to stay alert given the heightened global volatility although bargain hunting may prevail.
  • Furthermore, the valuation of the benchmark index remains cheap as compared to its regional peers, hence we anticipate the FBM KLCI to stay in consolidation mode within the 1,445-1,455 range for today.
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Daily Market Report (4 December 2023)
Daily Market Report (4 December 2023)
  • Wall Street ended on a positive note last Friday, with U.S. Treasury yields and the dollar both sliding.
  • Treasury yields fell as US Fed Chair Jerome Powell highlighted the increased equilibrium between the risks associated with excessive interest rate hikes and the risks of inadequate hikes to manage inflation.
  • The DJIA gained 295 points or 0.82% while Nasdaq added 79 points or 0.55%.
  • In Hong Kong, the HSI declined 213 points or 1.25% due to cautious trading following mixed economic data from China.
  • Back home, the FBM KLCI ended higher due to strong during the final hour of trading session.
  • We expect the buying on local stocks to continue given the attractive valuations and persistent support from foreign funds although we do not discount the possibility the of profit taking activities.
  • As such we anticipate the benchmark index to trend within the range of 1,450-1,460 for today.
  • Additionally, we expect some headwinds in the plantation sector as the CPO futures fell to below RM3,800 per tonne.
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Daily Market Report (1 December 2023)
Daily Market Report (1 December 2023)
  • The Santa Claus rally came early on Wall Street as stocks closed largely higher with the personal consumption expenditure (PCE) index remaining unchanged for October suggesting that inflation is easing in the US.
  • As such, the DJI Average surged 520 points while the Nasdaq dipped by 32 points as the US 10-year yield edged up slightly to 4.33%.
  • In Hong Kong, the HSI staged a technical rebound by adding 49 points to close just above the 17,000 level.
  • Nonetheless, sentiment remains jittery after the latest PMI manufacturing index from China reported slower activities than expected for October.
  • On the local front, the FBM KLCI staged a late uptrend to end positively at above the 1,450 mark.
  • Notwithstanding the recent market downtrend, we noticed foreign fund flows remain positive, indicating that the local bourse is in a solid position for a stronger performance in December.
  • As the cut in rates becomes louder in the US, we believe foreign funds will continue to snap up regional stocks thus expect the index to trend between the 1,450-1,460 range today.
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Daily Market Report (30 November 2023)
Daily Market Report (30 November 2023)
  • Wall Street closed mixed as traders remain optimistic that there are more legs for US equities as we approach the final month of 2023.
  • Sentiment was boosted by the higher than expected GDP growth for 3Q.
  • Thus, despite the DJI Average gaining 13 points, the Nasdaq dipped by 23 points as the US 10-year yield declined to 4.259%.
  • Over in Hong Kong, the HSI slumped 361 points to below the 17,000 level as investors’ confidence was hammered by sell-down of major Tech companies.
  • Meituan, China’s top food delivery platform sank 12% after it warned of shrinking demand for its services.
  • On the home front, the FBM KLCI close 2 points lower to just above the 1,445 mark as market undertone remains cautious due to regional weaknesses and lack of fresh catalysts.
  • Nonetheless, we noticed foreign inflows are still positive hence lending hopes that the local bourse may rebound anytime soon amid the easing US Treasury yields.
  • For today, we expect the index to trend between the 1,445-1,455 range.
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Daily Market Report (29 November 2023)
Daily Market Report (29 November 2023)
  • Wall Street ended in positive territory following statement from a Federal Reserve official that current policy may be sufficient to slow economic growth and curb inflation hence paving hopes for the end of rate hikes.
  • As a result, the DJI Average added 83 points while the Nasdaq gained 41 points as the US 10-year yield easing to 4.325%.
  • In Hong Kong, the HSI slumped 171 points on growing concerns of corporate earnings growth going forward.
  • There were also new concerns on Chinese Banks’ asset quality due to possibility of new lending measures to support the local property sector.
  • Back home, the FBM KLCI ended flat attributed to late buying support amid another lackluster day.
  • Nonetheless, we believe the local bourse to see some buying activities emerging today following positive cues from the US on potential softer interest rates, thus expect the index to hover within the 1,450-1,460 range.
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