Market Reports

Daily Market Report (6 June 2023)
Daily Market Report (6 June 2023)
  • Wall Street closed lower yesterday as investors digested weaker-than-expected economic data ahead of next week's Federal Reserve meeting.
  • The DJIA closed almost 200 points lower while Nasdaq and S&P500 were also in negative territory. 
  • In Hong Kong, stocks extended gains yesterday amid expectations Beijing will roll out measures to support an economic recovery and concerns about higher US interest rates eased.
  • Back home, the FBM KLCI closed negative territory last Friday despite the positive performance across the region.
  • We expect sentiment to remain cautious following the negative performance on Wall Street overnight, nonetheless, we believe the selldown on local equities seems unjustified as performance in 1QCY23 quarterly earnings were largely within expectations while the outlook of local economy remains positive.
  • We anticipate the FBM KLCI to trend within the range of 1,380-1,390 range for today.
  • The recent sell-off on banking stocks offers more potential upsides for investors, hence, we expect banks should be ripe for some accumulation soon.
  • Meanwhile the Brent Crude oil rebounded to US$76.60/barrel after Saudi Arabia on Sunday said it will slash its oil output by another 1m barrels per day starting in July.
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Daily Market Report (2 June 2023)
Daily Market Report (2 June 2023)
  • Wall Street gets a reprieve to closed firmer after the US House passed a debt ceiling bill which is crucial to avoid a default.
  • The DJI Average gained 153 points while the Nasdaq added 166 points as the US 10-year yield eased further to 3.601%.
  • Meanwhile in Hong Kong, the HSI ended 17 points lower as sentiment remained affected by worries over China’s recovery and waning expectations of the stimulus packages to revive economic activities.
  • Back home, the FBM KLCI continued to trend lower as selling gained momentum pushing the index to a YTD low.
  • Despite expectations of bargain hunting activities, weak market undertone further deters any meaningful accumulation as investors preferred to remain side-lined.
  • Nonetheless, we reckon some buying may emerge following the positive development on the debt ceiling hence anticipate the index to hover within the 1,385-1,395 range today.
  • Again, we advocate Banks as ripe for pickings as most are trending at a 6-month low currently despite the decent performance for the 1Q2023.
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Daily Market Report (1 June 2023)
Daily Market Report (1 June 2023)
  • Wall Street declined as negotiation on the US debt ceiling seems to have hit a snag creating concerns that more time may be required before an agreement can be achieved.
  • Nonetheless, many remain confident that a deal will be struck by today before the deadline.
  • As a result, the DJI Average closed 134 points lower with the Nasdaq losing 82 points as the US 10-year yield ended lower at 3.646%.
  • Over in Hong Kong, the HSI tumbled 361 points after reports that China’s manufacturing activities contracted igniting worries of its economic recovery.
  • The HSI so far declined by 19.6% YTD from its high in January.
  • On the home front, the FBM KLCI dropped to a 6-month low after breaking its 1,390 support level amid a weak regional performance as selling intensified on both Plantation and Energy stocks.
  • We reckon a swift rebound to happen otherwise the index may be stuck in a prolonged consolidation phase.
  • Therefore, we expect the index to hover within the 1,390-1,400 range today and see the Banks as excellent value propositions.
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Daily Market Report (31 May 2023)
Daily Market Report (31 May 2023)
  • It was another mixed session on Wall Street as traders wait for the Congress to vote on the hike of the US debt ceiling of which an agreement had already been reached between the Republican and Democrat.
  • As such, the DJI Average lost 50points while the Nasdaq added 42 points as the US 10-year yield eased to 3.694%.
  • Meanwhile, Hong Kong stocks snapped its week-long downtrend as the HSI closed 45 points higher on hopes that the US debt ceiling impasse will be resolved.
  • On the domestic front, the FBM KLCI ended to below the psychological 1,400 level as sentiment remained edgy amid the prevailing political climate ahead of the state elections.
  • Selling was apparent on selected Banking and Plantation heavyweights late in the session.
  • We reckon bargain hunting activities to emerge if the index touch the 1,390 mark and would advise accumulation on Banking stocks.
  • For today, we expect the index to hover within the 1,390-1,400 range.
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Daily Market Report (30 May 2023)
Daily Market Report (30 May 2023)
  • Wall Street is closed for Memorial Day on Monday.
  • With the US debt ceiling still pending, the DJI Average Futures is trading on a positive note at time of writing amid optimism that a deal would be struck soon.
  • Over in Hong Kong, sentiment was further dampened by the fall in China’s industrial profits as the HSI lost 196 points to hover just above the 18,500 level or around a 6-month low.
  • Back home, the FBM KLCI closed marginally higher attributed to late buying on Plantation, Energy and Utilities counters following a choppy session.
  • In view of the mixed trading pattern amongst the regional markets, we reckon today will see another lackluster performance from the local bourse.
  • Hence, we expect the index to again trend within the 1,400-1,410 range.
  • Latest spate of earnings from the Banks were decent but is still largely being ignored by the investing public.
  • We would advocate accumulation on the Banks as earnings should be solid for this year.
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