Daily Market Report (7 July 2023)
  • Wall Street slumped as traders were spooked by the higher than expected job data for June which will increase the possibility for the Feds to hike rates to cool inflationary pressure.
  • As a result, the DJI Average lost 366 points while the Nasdaq declined by 113 points as the US 10-year yield edged past the 4% mark to 4.031%.
  • Meanwhile, Hong Kong equities endured another dreadful day as the HSI tumbled by 577 points following the Feds minutes indicating more rate hikes coupled with signs of slowing China’s economy that saw the Yuan weakened against the USD at 7.25 or an 8-month low.
  • Back home, the FBM KLCI closed weaker amid a poor regional performance despite Bank Negara’s stance to maintain the OPR which was widely anticipated.
  • For today, we reckon trading on the local bourse will be muted following the weak closing on Wall Street thus expect the index to hover within the 1,380-1,390 range.
  • We believe Tech stocks may experience some headwinds in view of the higher interest rates environment in the US going forward.
Daily Market Report (6 July 2023)
  • Wall Street resumed trading on a weak note as minutes on June from the Feds indicated that there will be more rate hikes ahead.
  • This is despite recent data showing a weaker than expected factory order in May.
  • The DJI Average lost 130 points while the Nasdaq declined by 25 points as the US 10-year yield inched closer to the 4% level at 3.934%.
  • Over in Hong Kong, the HSI tumbled 305 points following a downgrade on several major banks by Goldman Sachs.
  • Sentiment deteriorated further as the ongoing US/China spat within the tech sector may hinder the development of the industry.
  • Back home, the FBM KLCI closed lower as selling intensified towards the closing.
  • It is interesting to note that the Plantation stocks are quietly sustaining the uptrend to a 1-month high reflecting the recent rebound in CPO prices currently above the RM3,900/tonne mark or a 3-month high.
  • Although the date for the state polls set on August 12 may alleviate some degree of uncertainties to the market, we reckon sentiment will remain cautious thus expect the index to trend within the 1,385-1,405 range today.
Daily Market Report (5 July 2023)
  • Wall Street was closed for Independence Day yesterday and a look at the futures showed that all 3 major indices are now hovering marginally lower.
  • Meanwhile, the chip tension between China and the US took a twist as China imposed export restrictions of gallium and germanium, 2 raw metals vital in semicon production.
  • In Hong Kong, the HSI added 109 points to almost a 2-week high buoyed by the share price surge in BYD, the world’s largest EV maker.
  • However, the tech sector was affected by the latest export ban.
  • On the local front, the FBM KLCI closed off the day low due to some late bargain hunting activities amid a mixed regional trend.
  • For today, though we believe BNM will maintain the OPR during the MPC meeting today, we reckon market sentiment will stay cautious waiting for the outcome.
  • Thus, we expect the index to hover within the 1,390-1,400 range today with interests possibly on the Financial and Telco sectors.
  • Meanwhile, the Brent crude price ended at above the USD76/barrel in response to production and exports cut by Saudi Arabia and Russia respectively.
Daily Market Report (4 July 2023)
  • Wall Street closed marginally higher on a shortened trading session ahead of the 4th of July holiday today.
  • Gains were mostly attributed to enthusiasm on AI related stocks as the Nasdaq added 29 points while the DJI Average was up by 11 points despite the US 10-year yield closing higher at 3.858%.
  • Hong Kong equities improved with the HSI jumped 390 points as sentiment improved over Janet Yellen’s imminent visit to China indicating the tension between China and US may be easing.
  • Back home, the FBM KLCI added 19 points to almost the 1,400 mark buoyed by broad-based buying on heavyweights amid a stronger regional performance.
  • Hopefully yesterday’s buying spree was spearheaded by foreign funds and if this is true, then we may see more funds flowing back into Asia as foreign funds begin to diversify.
  • For today, we reckon Financials and Tech stocks may experience continuous buying support despite market undertone to stay cautious ahead of BNM’s meeting tomorrow.
Daily Market Report (3 July 2023)
  • Wall Street maintained its impressive run spearheaded by technology big names.
  • However, sentiment has turned cautious as traders are expecting heightening volatility.
  • The DJI Average gained 285 points while the Nasdaq jumped by 196 points despite the US 10-year yield ended above the 3.8% mark at 3.841%.
  • Meanwhile in Hong Kong, the HSI closed marginally lower as economic activities remained lacklustre as Chinese manufacturing contracted while loan demand fell in the 2nd Quarter.
  • Back home, the FBM KLCI closed broadly lower attributed to the selling on financials.
  • \With BNM Monetary Policy Committee set to meet this Wednesday and Thursday.
  • Though we maintain that OPR will not be adjusted this week, sentiment is expected to stay fragile thus we anticipate the index to hover within the 1,370-1,380 range today.
  • Tech stocks are set to see some buying interests today taking cue from Wall Street.