Market Reports

Daily Market Report (12 July 2023)
Daily Market Report (12 July 2023)
  • Wall Street maintained its uptrend despite the uncertainty over the interest rate outlook ahead of June’s CPI which is due later today further illustrates that there is ample liquidity within the financial system.
  • As such, the DJI Average jumped 317 points while the Nasdaq gained 75 points as the US 10-year yield eased to below the 4.0% level at 3.978%.
  • In Hong Kong, the HSI added 180 points after more aid was granted for property developers to improve their cashflows and complete their project coupled with short covering activities by hedge funds.
  • Overall sentiment improved further as the crackdown on tech companies is expected to ease.
  • On the local front, the FBM KLCI surged past the 1,390 mark due to late buying activities.
  • Judging from the broadly improved regional markets’ performance, we suspect foreign funds to be net buyers recognising the region’s low valuations and stable monetary policy.
  • Therefore, we reckon the benchmark index to maintain its uptrend and expect it to trend within the 1,385-1,395 range today.
  • Meanwhile, decline on the supply side had pushed crude oil prices higher with the Brent crude testing the USD80/barrel.
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Daily Market Report (11 July 2023)
Daily Market Report (11 July 2023)
  • Wall Street recovered from recent downtrend as traders are looking towards the Consumer Price Index on Wednesday and the Producer Price Index on Thursday coupled with the start of the earnings season.
  • The DJI Average jumped 210 points while the Nasdaq edged 25 points higher as the US 10-year yield ended lower at 4.0%.
  • Meanwhile, Hong Kong equities closed higher with the HSI adding 114 points as traders are expecting China’s regulatory clampdown on the tech companies may be coming to an end.
  • Nonetheless, overall sentiment remained cautious on concerns of China’s worsening deflation outlook.
  • Back home, the FBM KLCI managed to close above the 1,380 level attributed to broad-based buying despite the index remains in consolidation mode.
  • For today, we anticipate the index to trend within the 1,375-1,385 range with the Telco sector to experience some bargain hunting activities following persistent decline last week.
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Daily Market Report (10 July 2023)
Daily Market Report (10 July 2023)
  • Wall Street struggled and closed lower as fears resurfaced on rate more hikes by the Feds later this month following a spate of strong job data.
  • As a result, the DJI Average tumbled 187 points while the Nasdaq lost 18 points as the US 10-year yield inched higher to 4.066%.
  • Over in Hong Kong, the HSI ended the week in dreadful fashion as the index declined by 167 points after Goldman Sachs downgraded the Chinese banks.
  • Tech stocks were not spared either following a sell-off by foreign funds.
  • On the home front, the FBM KLCI uptrend was short-lived after foreign funds began to unload their holdings.
  • The index dipped below the 1,380 threshold last Friday as sentiment turned drastically cautious.
  • The sell-down was quite prominent on the Financial, Plantation and Telco stocks after a decent performance recently.
  • We reckon market undertone to remain weak thus expect the index to hover within the 1,370-1,380 today.
  • Again, we foresee some headwinds for the Tech counters in view of slower global demand and higher interest rate environment in the US.
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Daily Market Report (7 July 2023)
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.
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Daily Market Report (6 July 2023)
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.
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