Market Reports

Daily Market Report (16 October 2023)
Daily Market Report (16 October 2023)
  • Wall Street closed on a mixed note as sentiment was spooked by the spike in crude oil prices renewing worries over rising inflation.
  • As such, though the DJI Average gained 39 points, the Nasdaq declined by 167 points despite the US 10-year yield easing to 4.617%.
  • In Hong Kong, the HSI retreated by 425 points after both the producer and consumer prices came in lower than expectations reigniting concerns over China’s recovery rate.
  • On the home front. The FBMKLCI ended flat as all eyes were on the tabling of Budget 2024 last Friday.
  • We believe the post-Budget reaction on the local bourse to be neutral though we expect buying support on the Construction players to persist.
  • As for the broader market, we anticipate it to remain lacklustre thus expect the index to hover within the 1,440-1,450 range today.
  • Meanwhile, crude oil prices surged as Israel began their ground raids inside the Gaza strip.
  • As a result, the Brent crude closed at almost US$91/barrel.
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Daily Market Report (13 October 2023)
Daily Market Report (13 October 2023)
  • Wall Street closed lower as the CPI figure for September showed no signs of weakening and as a result, pushed the US 10-year yield higher to 4.697% and that the Federal Reserves may need to hike rates next month.
  • As such, the DJI Average declined 174 points while the Nasdaq dipped by 75 points.
  • In Hong Kong, the HSI jumped 345 points higher underpinned by the emergence of Central Huijin which is part of China’s Sovereign wealth fund, mopping up shares of several banks namely ICBC, Construction Bank, Bank of China and Agriculture Bank.
  • On the local front, the FBMKLCI maintained its uptrend possibly attributed to firm buying support from local institutions.
  • As we wait for the return of Dato Seri Anwar to table Budget 2024 later today, we remain quite optimistic that there may be some pleasant surprises in store.
  • Nonetheless, we expect the benchmark index to hover within the 1,440-1,450 range today.
  • Again, we advocate investors to focus on value stocks like the Banks and Telcos plus sectors like Construction, Industrial Products and Property as dark horses.
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Daily Market Report (12 October 2023)
Daily Market Report (12 October 2023)
  • Wall Street closed positively amidst on a cautious mode as traders are waiting for the consumer inflation data later today.
  • Meanwhile, many are betting that the Federal Reserves may pause its rate hike this November but prolonging prevailing elevated rate environment indefinitely.
  • Therefore, while the DJI Average gained 65 points, the Nasdaq added 97 points as the US 10-year yield eased to 4.558%.
  • Over in Hong Kong, the HSI jumped by 228 points on optimism of a stronger Chinese economic recovery and that the US may stop hiking rates going forward.
  • On the home front, the FBM KLCI managed to close slightly higher but failed to surpass the 1,440 mark as trading remained rather lacklustre despite a more robust regional performance.
  • Though we reckon the inflow of foreign funds to persists, the benchmark index needs to see a solid uptrend to beyond the 1,450 level soonest possible to maintain its upward trajectory since mid-July.
  • For today, we believe the underperforming Telco sector may experience some bargain hunting activities and expect the index to hover within the 1,435-1,445 range.
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Daily Market Report (11 October 2023)
Daily Market Report (11 October 2023)
  • Wall Street ended broadly higher as traders returned as buyers spurred by the declining yield as funds find their way into bonds which are deemed as safe haven amid the ongoing Israel/Hamas conflict.
  • As a result, the DJI Average gained 135 points while the Nasdaq added 79 points as the US 10-year yield eased to 4.657%.
  • In Hong Kong, the HSI closed 147 points higher buoyed by inflows of funds from mainland China and latest comment that the Feds may potentially pause its rate adjustments in November after its recent aggressive tightening.
  • Back home, the FBM KLCI took us by surprise as it flew past the 1,430 mark with ease underpinned by foreign buying support across the region.
  • We expect buying on the Banks to persist coupled with the Telco sector after the strong profit taking activities for the past month.
  • Therefore, we believe the index to possibly scale higher and hover within the 1,435-1,445 range today in view of improving sentiment.
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Daily Market Report (10 October 2023)
Daily Market Report (10 October 2023)
  • Wall Street closed positively after a slow start as traders shook off the deadly Israeli-Hamas conflict late in the session.
  • As a result, the DJI Average jumped 197 points while the Nasdaq gained 53 points.
  • The bond market was closed for Columbus Day yesterday.
  • Nonetheless, crude oil prices surged in a knee jerk reaction from the conflict with the Brent crude edged past US$88/barrel and may derail the Federal Reserves attempts to manage inflation.
  • Over in Hong Kong, the HSI ended 31 points higher as trading resumed in a typhoon interrupted session yesterday.
  • Buying interests were mostly centred on oil related stocks in view of the conflict along the Gaza strip.
  • Back home, the FBM KLCI ended marginally higher supported by buying interests predominantly on Energy stocks.
  • For today, we reckon trading to remain subdued in line with the latest developments in the middle east thus sentiment should stay cautious and expect the index to hover within the 1,415-1425 range today.
  • Meanwhile, we believe Banking stocks may be ripe for some accumulation following its downtrend since early September.
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