Market Reports

Daily Market Report (8 May 2023)
Daily Market Report (8 May 2023)
  • Wall Street rebounded sharply higher last Friday following the better than expected jobs data accompanied by strong Apple’s earnings report.
  • The Dow gained 546.6 points while S&P500 added 75 points. Nasdaq surged 269 points.
  • Over in Hong Kong, stocks ended higher after China services activity expands for fourth straight month.
  • On the domestic front, the FBM KLCI ended higher due to buying on selected heavyweights particularly banking stocks.
  • Despite the strong gains on Wall Street, we remain cautious about the short term outlook due to increased market volatility in the region and external uncertainties, particularly the US debt ceiling issue.
  • Hence, we anticipate the benchmark index to trend sideways within the range of 1,425-1,435 for today.
  • We advise investors to accumulate blue chips such banks and telcos for better defensive strategy.
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Daily Market Report (5 May 2023)
Daily Market Report (5 May 2023)
  • Wall Street closed lower for fourth consecutive day on renewed banking fears.
  • The Dow fell by 286 points while Nasdaq shed 0.49%.
  • Over in Hong Kong, stocks ended higher as investors cheered the prospect of an imminent pause to interest-rate hikes.
  • On the domestic front, the FBM KLCI closed in negative territory as Bank Negara Malaysia (BNM) unexpectedly raised the overnight policy rate (OPR) by 25 basis points (bps) to 3%.
  • We believe the local market to see some headwinds particularly banking and property stocks following BNM's monetary tightening measure although bargain hunting activities may emerge as well.
  • Hence, we anticipate the benchmark index to trend sideways within the range of 1,420-1,430 for today.
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Daily Market Report (3 May 2023)
Daily Market Report (3 May 2023)
  • Wall Street slumped as fears on the US regional banking sector returned ahead of the Feds rate decision later today.
  • As a result, the DJI Average lost 367 points while the Nasdaq closed 132 points lower despite the US 10-year yield ending lower at 3.433%.
  • Meanwhile in Hong Kong, the HSI closed in positive territory buoyed mainly by the stellar earnings by HSBC notwithstanding the weak manufacturing activities in China.
  • Nonetheless, the HSI remains below the 20,000 mark as investors remain wary on the rate decision by the Feds.
  • Back home, the FBM KLCI broke out from its slumber to close above the 1,425 level.
  • However, we reckon buying activities to recede today ahead of another public holiday tomorrow hence expect the index to hover between the 1,420-1,430 range.
  • We believe the Oil & Gas stocks to experience more headwinds today following the decline in crude prices on expectations of another rate hike on the back of weak demand from China that saw the Brent crude dipped to around the US$75/barrel.
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Daily Market Report (2 May 2023)
Daily Market Report (2 May 2023)
  • Wall Street closed in negative territory following JPMorgan Chase takeover of First Republic as many believe that the US banking system is not out of the woods yet.
  • Meanwhile, the FOMC meeting on May 3rd further affects sentiment as a 25bps rate hike should be on the nards.
  • Thus, the DJI Average declined 46 points while the Nasdaq closed 14 points lower as the US 10-year yield edged higher at 3.57%.
  • Both Hong Kong and the local bourse were closed for Labour Day yesterday.
  • Domestically, the FBM KLCI ended slightly lower at 1,415 last Friday ahead of the long weekend.
  • For today, we reckon some accumulation of stocks to emerge and expect the index to trend higher after being stuck in a tight range over the past 3 days.
  • Therefore, we anticipate the index to trend within the 1,415-1,425 range today as we enter into corporate results season this month.
  • Plantation counters may continue to see some headwinds as the crude palm oil price dips to a YTD low at below the RM3,400/tonne level.
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Daily Market Report (28 April 2023)
Daily Market Report (28 April 2023)
  • Despite GDP growth came in lower than expected for the 1Q2023 indicating a looming recession, US equities surged buoyed by strong corporate earnings as the DJI Average rose by 524 points.
  • Meanwhile, the Nasdaq added 288 points as traders also largely ignored the higher US 10-year yield at 3.528%.
  • Over in Hong Kong, equities recovered attributed to solid earnings report from AIA Group and Ping An Insurance coupled with expectations of more earnings improvements from heavyweights like BYD, CNOOC and China Life Insurance.
  • As a result, the benchmark HSI added 83 points to above the 19,800 mark.
  • Back home, the FBM KLCI finally reversed its weak performance of late to close almost 4 points higher.
  • We expect the index to trend higher today and anticipate it to hover within the 1,420-1,430 range with interests returning to the Tech sector after a 7 day downtrend.
  • However, Plantation stocks may continue to experience headwinds in view of the weakening trend of crude palm oil price which had dipped to below the RM3,500/tonne.
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