Market Reports

Daily Market Report (26 June 2023)
Daily Market Report (26 June 2023)
  • The rally on Wall Street ran out of steam as all 3 major indices closed in negative territory as traders are now concerned about recession especially after the Bank of England surprised everyone with a 50bps rate hike.
  • As a result, the DJI Average lost 219 points while the Nasdaq declined by 138 points as the US 10-year yield edged lower at 3.737%.
  • In Hong Kong, the HSI slump continues as it ended below the 19,000 mark following the rate hike in the UK thus reviving inflationary fears.
  • On the home front, the FBM KLCI also closed in the red amid a broadly weaker regional performance last Friday.
  • Financials bore the brunt of the selling after a decent showing last week.
  • For today, we reckon sentiment to remain fragile as the DJI Average futures remains in the red at time of writing thus expect the index to hover within the 1,380-1,390 range.
  • Amid recent rate increases in Europe, we believe Tech stocks may experience some selling today.
  • Meanwhile, in view of the recessionary fears the Brent crude closed below USD74/barrel.
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Daily Market Report (23 June 2023)
Daily Market Report (23 June 2023)
  • Wall Street closed on a mixed note, with two of the three major indices finishing higher as investor reluctant to make significant moves at the moment, focusing instead on the latest developments from the central bank's hiking campaign.
  • As a result, the DJI Average shed a mere 5 points while the Nasdaq gained 128 points as the US 10-year yield inched marginally higher to 3.797%.
  • Over in Hong Kong, the HSI continued to slump on the concerns over the Chinese economy and disappointment with the central bank's prime rate cuts in China resonating.
  • Back home, the FBM KLCI continue its upward trajectory lifted by selected buying on heavyweight financials.
  • We believe that the local bourse to remain resilient and reckon the index again hover within the 1,390-1,400 range today, with buying interest continuing to be seen in banking stocks.
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Daily Market Report (22 June 2023)
Daily Market Report (22 June 2023)
  • Wall Street tumbled as traders digested Chairman Powell’s comment that there will be more rate hikes to contain inflation this year.
  • As a result, the DJI Average lost 102 points while the Nasdaq declined by 165 points as the US 10-year yield inched marginally higher to 3.727%.
  • Over in Hong Kong, the HSI slumped to almost a 3-week low as sentiment remains fragile with China’s limited stimulus package to boost its faltering economy.
  • Back home, the FBM KLCI closed at almost a 1-month high buoyed by recent comments by PM Datuk Seri Anuar Ibrahim on the equity market.
  • We reckon if the index manages to stay above the 1,390 level today, we expect it to challenge the 1,400 next.
  • As such, we believe accumulation of Financial and Telco stocks to persist after being sold-down recently.
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Daily Market Report (21 June 2023)
Daily Market Report (21 June 2023)
  • Wall Street took a breather following a strong run-up since May as traders are now looking for new catalysts for equities to trend higher.
  • The DJI Average declined by 245 points while the Nasdaq lost 22 points as the US 10-year yield dipped to 3.719%.
  • In Hong Kong, the HSI slumped by 306 points as traders were largely unimpressed by the 10bps cut in prime rates to revive China’s ailing housing market.
  • Locally, the FBM KLCI continued with its consolidation despite closing in positive territory due to last minute buying again.
  • News of dissolutions amongst the 6 state assembles will heighten expectations that the State election may be soon rather than later, will see sentiment to remain cautious for now.
  • Therefore, we reckon the index to again hover within the 1,385-1,395 range with Tech related stocks to experience some profit taking activities today after a strong run-up since end-May.
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Daily Market Report (20 June 2023)
Daily Market Report (20 June 2023)
  • Wall Street was closed on Monday but a look at the futures showed that US equities may open on a weak note later today thus regional markets ended mostly in the red.
  • Over in Hong Kong, the HSI slipped 127 points to below the 20,000 mark again as traders are becoming impatient that China will only offer limited stimulus to the financial market.
  • Back home, the FBM KLCI pared earlier losses to end marginally lower due to broad-based buying activities in the afternoon session following the PM announcement of a reform to revive the local stockmarket that includes a cut in stamp duty for equities trading in a bid to enhance market vibrancy.
  • Though the adjusted stamp duty is still higher than previously, we reckon the latest rate and ceiling are good attempts to enhance market participation.
  • Whether this will positively reflect in the local bourse remains to be seen but we believe overall sentiment should be boosted somewhat from the move thus expect the index to trend between the 1,385-1,395 today with some interests on the financial sector.
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