Market Reports

Daily Market Report (18 May 2023)
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.
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Daily Market Report (17 May 2023)
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.
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Daily Market Report (16 May 2023)
Daily Market Report (16 May 2023)
  • Wall Street closed on a positive note as negotiations on the US debt ceiling will resume today with the Feds being rather optimistic that a deal can be struck soon rather than later.
  • As such, the DJI Average gained 48 points while the Nasdaq jumped 80 points higher as the US 10-year yield edged higher at 3.508%. 、
  • Meanwhile, Hong Kong market rallied on hopes of strong quarterly earnings from both Tencent and Alibaba and that banks and insurers will benefit from government’s initiatives to boost the valuations of state-owned enterprises thus pushed the HSI 344 points higher to almost the 20,000 level.
  • On the domestic front, the FBM KLCI continued with its downtrend despite the improved regional performance as broad-based selling remains.
  • However, we reckon bargain hunting activities should emerge anytime soon following the week-long decline and expect both the Banks and Telcos to be top of the buying list.
  • As such, we anticipate the index to trend within the 1,415-1,425 range today.
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Daily Market Report (15 May 2023)
Daily Market Report (15 May 2023)
  • As Wall Street is facing a myriad of economic concerns, the latest to hog the limelight would be the US debt ceiling which many expect a blow-out by early June if it’s not raised.
  • A latest check already indicated that the US total debt has surpassed the US$31.4 trillion ceiling now at US$31.7 trillion as negotiations will resume this week.
  • As a result, trading on Wall Street has been cautious as the DJI Average eased 9 points while the Nasdaq declined by 44 points as the US 10-year yield inched slightly higher at 3.463%.
  • In Hong Kong, sentiment was affected by the slowdown in China’s credit growth pointing towards a possible slowdown in economic activities going forward.
  • Thus, the HSI lost 116 points to around the 19,600 level dragging its consolidation longer since the mid-April downtrend.
  • Back home, the FBM KLCI ended in negative territory impacted by the weak regional performance.
  • We were surprised by the persistent selling of banking stocks of late despite expectations of a solid performance from the sector this year.
  • Therefore, we reckon banks should be ripe for some accumulation soon.
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Daily Market Report (12 May 2023)
Daily Market Report (12 May 2023)
  • Wall Street closed broadly lower as new inflation data came in cooler than expected, putting pressure on equities amid concerns around regional banks.
  • The Dow fell by almost 222 points, while the S&P500 lost 7 points, dragged down by Disney.
  • However, Nasdaq gained 22 points.
  • In Hong Kong, stocks closed lower following a major sell-off across the region.
  • On the domestic front, the FBM KLCI ended in negative territory due to selling during the final minutes of trading.
  • Nonetheless, we expect local equities to remain steady due to their cheap valuations and the strength of the local economy.
  • Hence, we anticipate the benchmark index to trend higher within the range of 1,425-1,435 for today.
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