Daily Market Report (23 May 2023)
  • US stocks closed on a mixed note amid a fresh round of negotiations on the US debt ceiling with the deadline looming in 2 weeks.
  • While the DJI Average lost 140 points, the Nasdaq added 63 points despite the US 10-year yield inching higher at 3.719%.
  • Over in Hong Kong, equities gained as the HSI rebounded by 228 points spurred by a surge in tech stocks following Beijing’s ban on Micron Technology that propel a rally for the Chinese chip makers thus within the Tech broader sector.
  • On the home front, the FBM KLCI fell to below the 1,420 mark primarily due to the selling on selective banking heavyweights.
  • Nonetheless, we reckon bargain hunting on the banks may surface today as we deem the recent sell-down on the sector may have been overdone.
  • As such, we reckon the index to trend higher today possibly trending between the 1,420-1,430 range today.
  • Another interesting development is that, despite recent slump in CPO futures, Plantation stocks remained rather resilient attributed to continuous buying support.
Daily Market Report (22 May 2023)
  • Wall Street ended on a weak note as optimism over a positive outcome for the US debt ceiling waned as negotiations were halted indefinitely.
  • As a result, the DJI Average lost 109 points while the Nasdaq dipped 39 points as the US 10-year yield continued to trend higher currently at 3.682%.
  • In Hong Kong, equities slumped with a 277-point decline following a weaker than expected results from Alibaba further indicating that the recovery from China may be losing momentum.
  • Back home, trading on the local bourse remained lacklustre as the FBM KLCI closed flat attributed to some late buying on banking stocks.
  • In view of the uncertainty from the US, we reckon regional sentiment to stay fragile hence expect the FBM KLCI to be under some selling pressure.
  • Therefore, we believe the index to hover within the 1,420-1,430 range today with continued headwinds on the Plantation sector as the crude palm oil (CPO) futures fell below the RM3,400/tonne level or almost a 7-month low on slower demand.
Daily Market Report (19 May 2023)
  • Wall Street ended higher as traders are betting on a positive outcome from the ongoing negotiations regarding the US debt ceiling.
  • As a result, the DJI Average gained 115 points while the Nasdaq jumped 188 points higher despite the US 10-year yield’s continuous climb currently at 3.651% or almost a 2-month high.
  • Over in Hong Kong, the HSI added 167 points as traders are looking to more supportive government policies following a spate of disappointing economic data from China.
  • As for the local bourse, the FBM KLCI closed in positive territory attributed to rotational plays on selected heavyweights despite still being stuck in a consolidation phase.
  • In view of this, we reckon 1,430 is now a strong resistance for the index and must be broken decisively before looking at the next phase.
  • We believe recent selling on the Banks has been largely unjustified and may see some bargain hunting activities on the sector hence anticipate the index to possibly trend within the 1,425-1,435 range today.
Daily Market Report (18 May 2023)
  •  Wall Street rebounded on optimism that a positive outcome from the US debt ceiling negotiation will be in place by the end of this week.
  • As a result, the DJI Average jumped 409 points higher while the Nasdaq added 157 points despite the US 10-year yield closed higher at 3.572%.
  • Meanwhile, Hong Kong equities slumped as traders remain sidelined with an eye on earnings from tech companies as well as stronger indication from China’s economic recovery.
  • On the home front, the FBM KLCI closed marginally higher as sentiment remained restrained due to the lack of fresh catalysts.
  • Interestingly, yesterday’s reasonable showing was mainly attributed to the solid showing from Plantation stocks despite the weakening crude palm oil (CPO) prices.
  • As CPO futures continue to dampen, we may see some headwinds for the planters today as profit taking activities may emerge.
  • Nonetheless, we reckon the index to hover within the 1,420-1,430 range today.
  • As for the corporate results, we noticed it has been a mixed bag so far.
Daily Market Report (17 May 2023)
  • Wall Street closed on a weak note as traders are waiting for the outcome of the ongoing debt ceiling negotiation.
  • Sentiment was further dampened by the lower April retail sales as the DJI Average declined by 336 points while the Nasdaq was marginally lower by 22 points with the US 10-year yield ending higher at 3.541%.
  • In Hong Kong, equities ended flat as traders remain concern on China’s economic recovery which have had fizzled out of late.
  • In addition, China’s April industrial production and retail data came in weaker than expected due partly to Beijing’s inability to boost confidence.
  • Back home, the FBM KLCI finally broke out from its downtrend attributed to bargain hunting activities across selected sectors.
  • Though we expect such buying to continue, overall sentiment remains cautious over the uncertainty in the US.
  • For today, we reckon the index to hover within the 1,415-1,425 range.
  • Meanwhile, crude palm oil price dipped to below RM3,500/tonne over the surge in output from Indonesia hence may see some selling on the Plantation counters today.