Market Reports

Daily Market Report (25 May 2023)
Daily Market Report (25 May 2023)
  • Wall Street tumbled as sentiment remains stressed amid the ongoing negotiations on the US debt ceiling with no signs of an agreement soon.
  • As such, the DJI Average declined by 256 points while the Nasdaq fell 77 points as the US 10-year yield jumped to a 3-month high at 3.744%.
  • In Hong Kong, the HSI lost 315 points to a 2-month low as traders remain spooked by the US debt ceiling impasse coupled with the weak Chinese markets.
  • Headwinds on tech stocks further pressured the broader sector, in particular news of Alibaba laying off 7% of its work force.
  • On the domestic front, the FBM KLCI remained stuck within a narrow trading range before ending below the 1,410 level in the absence of fresh catalysts.
  • Nonetheless, we are hopeful that bargain hunting activities to emerge, especially on the Banks as we expect earnings from the Banks over the next few days to remain decent.
  • Despite the prevailing weak market undertone, we anticipate the index to possibly trend within the 1,410-1420 range today.
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Daily Market Report (24 May 2023)
Daily Market Report (24 May 2023)
  •  Wall Street fell as discussion on the US debt ceiling continues to drag on without any outcome in sight.
  • As a result, the DJI Average lost 231 points while the Nasdaq declined by 160 points notwithstanding the US 10-year yield closed lower at 3.698%.
  • Similarly, Hong Kong stocks also ended lower as the HSI declined by 247 points as the protracted debt ceiling negotiations and heightening tension between China and the US continue to weigh on sentiment.
  • Amid the weakness, pharmaceutical stocks surged as the Chinese authorities said that more vaccines are made available to curb the new Covid wave.
  • Back home, the FBM KLCI closed lower in the absence of any bargain hunting activities. The sell-down on heavyweights was broad-based as sentiment was affected by regional weaknesses.
  • For today, we reckon the index to trend within the 1,405-1,415 range as investors may stay side-lined until the US resolves its debt ceiling woes.
  • Meanwhile, strong demand drove crude oil prices higher as the Brent crude climbed closer to US$78/barrel.
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Daily Market Report (23 May 2023)
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.
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Daily Market Report (22 May 2023)
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.
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Daily Market Report (19 May 2023)
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.
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