Market Reports

Daily Market Report (31 October 2023)
Daily Market Report (31 October 2023)
  • Wall Street staged a strong rally as traders are betting that the Federal Reserves may be done with interest rate hikes for the rest of 2023 after hitting a “low” on Monday.
  • Therefore, all eyes will be on the FOMC meeting today and tomorrow.
  • Whether this is a relief rally remains to be seen as the DJI Average surged 511 points while the Nasdaq added 146 points with the US 10-year yield remaining elevated at 4.888%.
  • In Hong Kong, the HSI barely stayed above water as sentiment was fragile due to weak earnings from major banks attributed to high impairment charges related to the weak Chinese property market.
  • Back home, the FBM KLCI ended slightly lower to close below the 1,440 mark as investors continue to be sidelined amid weaknesses across the various sectors.
  • Nonetheless, we reckon regional market may take cue from Wall Street today which will spillover to the local bourse.
  • In view of this, we expect the index to hover within the 1,440-1,450 range and expect some bargain hunting activities for the Contractors and Telcos today. 
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Daily Market Report (30 October 2023)
Daily Market Report (30 October 2023)
  • Wall Street continued with its decline as traders largely ignored the recent spate of corporate earnings in a bid to navigate out from prevailing confluence of headwind.
  • As a result, the DJI Average lost 367 points while the Nasdaq managed to stay above water adding 47 points supported mainly by Amazon while the US 10-year yield remains stubbornly high at 4.845%.
  • Over in Hong Kong, the HSI jumped 354 points as more companies are supporting share buy-back plans which lifted confidence following the unveiling of the 1 trillion Yuan issuance of special government bonds.
  • On the home front, the FBM KLCI ended slightly higher amid a lacklustre session last Friday.
  • Sentiment remains cautious in view of the heightened volatility on Wall Street and the global currencies versus the US$.
  • Therefore, we believe trading activities on the local bourse may remain muted as we head towards 3Q2023 results season.
  • For today, we expect the index to trend between the 1,435-1,445 range.
  • Meanwhile, crude oil prices rebounded with the Brent crude closing above the US$90/barrel level again on prevailing tension in the Middle east.
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Daily Market Report (27 October 2023)
Daily Market Report (27 October 2023)
  • Wall Street slumped as traders were largely unimpressed with the latest batch of earnings from large tech companies and expect the remaining ones namely Amazon and Apple, likely to struggle amid the weakening US economy.
  • As a result, the DJI Average lost 252 points while the Nasdaq declined by 226 points despite the US 10-year yield easing to 4.849%.
  • Over in Hong Kong, the HSI dipped marginally but maintain above the 17,000 threshold as traders are waiting for additional stimulus which currently are lacking from China.
  • Meanwhile, the sell-off in sportswear maker Li Ning further stokes worries over the strength of consumer consumption in China.
  • Back home, the FBM KLCI ended in negative territory due to last minute selling activities.
  • As expected, the local bourse performance has been uninspiring due to the absence of fresh leads and we anticipate the same for today as the return of foreign funds seems to be drying up.
  • Nonetheless, we believe funds diversification to be on-going and we envisage the emerging markets to benefit going forward.
  • For today, we foresee the index to trend within the 1,435-1,445 range.
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Daily Market Report (26 October 2023)
Daily Market Report (26 October 2023)
  • Wall Street closed lower following a choppy session as sentiment was impacted by disappointing earnings from Alphabet amid increasing US yields.
  • As such, the DJI Average declined by 105 points while the Nasdaq slumped by 319 points as the US 10-year yield rebounded to 4.961%.
  • In Hong Kong, the HSI added 94 points to close above the 17,000 mark after China unveiled for massive infrastructure spending in a bid to boost the country’s stuttering economy.
  • On the home front, the FBM KLCI rebounded from broad based bargain hunting activities partly also due to stronger regional performances.
  • Nonetheless, we believe sentiment to remain cautious as we head towards heightening volatility environment mainly from the US thus expect the index to stay disciplined and hover within the 1,440-1,450 range today.
  • Yesterday’s decline amongst the construction players may present some buying opportunities today.
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Daily Market Report (25 October 2023)
Daily Market Report (25 October 2023)
  • Wall Street closed firmer spurred on by a spate of strong corporate earnings and that the US 10-year yield eased to 4.819% after surpassing 5% a couple of days ago.
  • As a result, the DJI Average added 205 points while the Nasdaq jumped by 121 points.
  • Over in Hong Kong, the HSI declined by 181 points to below the 17,000 mark which is a YTD low despite some buying by the Chinese sovereign fund as sentiment remains very much impacted by China’s anemic economic growth coupled with the weakening Yuan against the US$.
  • Back home, the FBM KLCI pared earlier losses but remained in negative territory as the market undertone has turned cautious despite an improving regional performance.
  • Nonetheless, we expect a swift rebound for the index to avoid a prolonged consolidation. Therefore, we anticipate the index to trend within the 1,435-1,445 range today as broad-base accumulation may emerge.
  • Meanwhile, the easing of crude oil prices should also lend some welcome reprieve attributed to additional supplies from Venezuela hence pushed the Brent crude to US$88/barrel from US$93/barrel last week.
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