Daily Market Report (25 August 2023)
  • Wall Street slumped as the recent tech rally fizzled out with traders now bracing themselves for a key speech from the Feds chairman Jerome Powell later today.
  • As such, the DJI Average lost 374 points while the Nasdaq declined by 257 points as the US 10-year yield edged higher to 4.241%.
  • Over in Hong Kong, the HSI surged past the 18,000 mark as sentiment was buoyed by a solid set of corporate earnings while traders were also taking the opportunity to bargain hunt.
  • On the home front, the FBMKLCI closed in positive territory as market’s undertone remains positive.
  • It is interesting to note that buying on Plantation counters remains strong as the recent spike in the crude palm oil price should boost earnings in the 3Q2023 thus investors are anticipating for a better performance from the planters this year.
  • For today, we believe the index to possibly hover between the 1,440-1,450 range.
Daily Market Report (24 August 2023)
  • Wall Street closed on firmer ground as the US 10-year yield eased to 4.198% coupled with the ongoing artificial intelligence craze (AI) craze especially on Nvidia.
  • As a result, the DJI Average 184 points while Nasdaq gained 215 points.
  • In Hong Kong, the HSI added 55 points as sentiment improved somewhat as investors retain their hopes of more fiscal stimulus amid a mixed bag of corporate earnings.
  • Back home, following a solid performance over the past 2 weeks, the FBM KLCI declined as investors took the opportunity to take profit on concerns over China’s economic condition.
  • Though such correction is deemed healthy, we reckon an immediate rebound is imminent as bargain hunting activities should emerge anytime soon.
  • Therefore, we anticipate the index to hover between the 1,440-1,450 range today.
  • Meanwhile, as earnings announcements picked up pace, we noticed that Plantation stocks as expected had so far been affected by the lower CPO prices.
Daily Market Report (23 August 2023)
  • It was another mixed day on Wall Street as traders remained uncertain of the market direction going forward.
  • Nonetheless, the financial and retail sectors bore the brunt of the selling as the US 10-year yield stayed elevated at 4.332%.
  • As a result, the DJI Average lost 175 points while the Nasdaq added 8 points.
  • Over in Hong Kong, the HSI rebounded by 168 points attributed to bargain hunting activities as recent decline to a 9-month low was deem too excessive amid the pessimism over China’s property market.
  • On the home front, the FBM KLCI closed flat despite the apparent profit taking activities late in the session.
  • This shows market’s undertone of the local bourse is resilient despite sentiment may have turned cautiously optimistic in view of recent headwinds from China and the US.
  • For today, we believe trading will be lackluster due to the absence of fresh leads thus expect the index to hover within the 1,445-1,455 range as we brace ourselves for an influx of corporate earnings over the next few days.
Daily Market Report (22 August 2023)
  • Wall Street closed on a mixed note with traders undergoing a self-denial phase as the Nasdaq jumped 207 points despite the US 10-year yield touching 4.342% which is more than a 15-year high.
  • Tech shares historically struggle in high-rate environment making yesterday’s performance rather unusual.
  • Meanwhile in Hong Kong, the HSI slumped to around the 17,600 level or a 9-month low as market participants were unconvinced by the latest measures unveiled by regulators to boost the ailing Chinese economy and equity market.
  • Back home, the FBM KLCI closed higher on the back of solid buying support from foreign funds as the index edged past the 1,450 mark.
  • We believe the local bourse is in a good performing phase currently underpinned by the shift in sentiment that has turned more optimistic.
  • Judging by the immediate rebound of the benchmark index, we believe the index may trend higher thus expect it to hover between the 1,450-1,460 range today with focus possibly back to the financial and construction related stocks.
Daily Market Report (21 August 2023)
  • Wall Street continued to struggle as sentiment remains affected by the US strong economic growth amidst a mixture of inflationary impact and potential rate hikes by the Feds next month.
  • As such, though the DJI Average added 26 points, the Nasdaq declined by 26 points as the US 10-year yield stayed elevated at 4.251%.
  • In Hong Kong, the HSI slumped from persistent sell-down due to concerns on defaults within the property sector and potential fallout of China’s shadow financing.
  • Meanwhile, the Chinese Yuan hit a lowest level versus the US$ since October last year at 7.26.
  • At home, the FBM KLCI closed marginally lower as the benchmark index was under some pressure attributed to regional weaknesses especially from China and Hong Kong.
  • On a broader sense, both the Construction and Technology sectors experienced hefty selling.
  • As mentioned, we need to see the index to stage a rebound as soon as possible and it is encouraging to note that buying interests remained rather strong during the afternoon session last Friday.
  • Thus, for today, we expect the index to trend between the 1,445-1,455 range.