Market Reports

Daily Market Report (18 August 2023)
Daily Market Report (18 August 2023)
  • Wall Street closed lower as traders turned cautious by the Fed’s stance to hike rates following the disclosure of its minutes coupled with the US resilient economic data as the US 10-year yield edged higher at 4.284%.
  • As a result, the DJI Average after a strong opening, lost 291 points while the Nasdaq closed 158 points lower.
  • In Hong Kong, the HSI managed to recoup earlier losses to end yesterday’s session on a flat note due to some bargain hunting activities.
  • Nonetheless, sentiment remains wary of China’s economic growth and the turmoil within the property sector.
  • Back home, the FBM KLCI declined to below the 1,450 level as profit taking activities emerged after a 3-day uptrend.
  • We suspect the selling may be from foreign funds as it was broad-based amid regional weaknesses.
  • Though we reckon market’s undertone has turned cautious attributed mainly to the headwinds from both China and the US, the index needs to show an immediate rebound to avoid being trap into another prolonged consolidation phase.
  • For today, we expect the index to hover within the 1,445-1,455 range.
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Daily Market Report (17 August 2023)
Daily Market Report (17 August 2023)
  • Wall Street continues to weaken as sentiment was spooked by the Fed’s minutes which hinted of more possible rate hikes amidst the lingering inflation risks and tight labour situation.
  • As a result, the DJI Average lost 191 points while the Nasdaq declined by 156 points as the US 10-year yield edged to another YTD high at 4.258%.
  • Over in Hong Kong, the HSI slumped to a 3-month low following JP Morgan Chase and Barclays downgrading their growth estimates for China amid deepening economic woes and the lack of effective stimulus packages.
  • On the domestic front, the FBM KLCI continues to chart impressive performance supported by broad based accumulation of blue chips despite the regional markets persistent decline.
  • Nonetheless, the benchmark index YTD performance is still 2.1% lower year-on-year hence more upside for the local bourse can be expected.
  • Though we are faced with some headwinds currently from the US and China, we believe market undertone remains strong especially from the recent upliftment of political uncertainty.
  • For today, sentiment may remain cautious thus anticipate the index to hover between 1,455-1,465 range.
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Daily Market Report (16 August 2023)
Daily Market Report (16 August 2023)
  • Wall Street ended on a weak note as sentiment is affected by the slowdown in China coupled with the condition of the Banking sector.
  • Recent downgrade on the US banks saw more sell-down on the financial stocks as the DJI Average 361 points while the Nasdaq declined by 157 points on the back of higher US 10-year yield which topped 4.219% or a YTD high.
  • In Hong Kong, the HSI continued with its slide as the index lost 192 points on pessimism of China’s slowdown and that the latest 15bps cut by PBOC may not be enough to boost the Chinese economy.
  • Weak domestic spending and rising unemployment continue to plague China in the absence of desire stimulus from the Government.
  • At home, the FBM KLCI closed higher amid a mixed regional performance as buying support from foreign funds remains obvious.
  • Nonetheless, we reckon sentiment may turn cautious today in view of the headwinds from both China and the US.
  • With the index currently hovering around a 6-month high, we reckon some profit taking activities may emerge hence expect the index to trend between the 1,455-1,465 range today.
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Daily Market Report (15 August 2023)
Daily Market Report (15 August 2023)
  • Wall Street closed firmer regardless that sentiment remained cautious ahead of more earnings report from major retailers coupled with July’s retail sales out data later today.
  • The DJI Average added 26 points while the Nasdaq was 146 points higher despite the US 10-year yield edging higher to 4.201%.
  • Meanwhile in Hong Kong, the HSI declined to below the 19,000 mark as sentiment continued to be weighed by China’s struggling economy over weak loans and credit growth as well as prevailing crisis within the property sector.
  • Back home, the FBM KLCI pared earlier losses to end flat from late buying activities illustrating that the market undertone is still strong notwithstanding a weak regional performance.
  • The Construction sector, as expected generated solid buying interests as many are expecting the Government to kick-start the domestic economy via the rolling out of infra-related projects soon.
  • Thus, we anticipate buying support to prevail and see the index to hover between the 1,460-1,470 range today with accumulation on the banking stocks to persist.
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Daily Market Report (14 August 2023)
Daily Market Report (14 August 2023)
  • Wall Street ended the week on a mixed note attributed to contradicting data from the CPI and PPI.
  • While the consumer price index came in within expectations, the producer price index for July was higher than estimates.
  • As such, the DJI Average gained 105 points while the Nasdaq lost 93 points as the US 10-year yield rose to 4.158%.
  • Over in Hong Kong, the HSI declined by 173 points dragged mainly by property stocks as concerns over the sector downturn deepens amid the slow recovery in China.
  • On the home front, the FBM KLCI closed almost flat from late buying activities after a slow start last Friday attributed to the looming state election the next day.
  • We believe results from the recently concluded state election bodes well for the equity market as more inflow of foreign funds is anticipated going forward.
  • We are indeed optimistic about the results despite initial rumours that Selangor may be a tough contest.
  • For today, we expect the index to hover within the 1,460-1,475 range with interest to center on the Construction and Banking related stocks.
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