Market Reports

Daily Market Report (20 March 2023)
Daily Market Report (20 March 2023)
  • Wall Street tumbled as concerns over the US banking system resurfaced with First Republic Bank being the latest facing liquidity crunch with more to come ahead of the FOMC meeting on 21/22 March.
  • Although all 3 major indices closed off the day’s low, the DJI Average fell 384 points while the Nasdaq declined by 87 points as the US 10year yield ended lower at 3.44%.
  • In Hong Kong, equities rebounded on improved sentiment over the ongoing banking crisis and China resuming live feed data for the bond market.
  • Domestically, the FBM KLCI surged past the 1,410 level underpinned by robust bargain hunting activities across the board.
  • Nonetheless, we reckon investors to remain wary over the volatile US market last week thus expect the index to possibly trend within a tight range again of between 1,405-1,415 until the outcome by FOMC becomes clear.
  • Flight of funds to safety was apparent as gold prices had surged to almost the USD1,990/oz.
  • Meanwhile, crude oil prices continued to slip with the Brent crude hovering below the USD73/barrel.
  • We still advocate investors to BUY on weakness if opportunity arises.
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Daily Market Report (17 March 2023)
Daily Market Report (17 March 2023)
  • Wall Street rebounded as bailouts for both Credit Suisse and First Republic Bank eased concerns of a deepening banking crisis despite the ECB (European Central bank) jacked up interest rates by another 50bps.
  • Meanwhile, many are betting that the Feds may be less aggressive in hiking interest rates next week.
  • As a result, the DJI Average gained 372 points while the Nasdaq jumped by 283 points as the US 10-year yield edged higher to 3.58%.
  • As for Hong Kong, the HSI tumbled 336 points on concerns of the banking crisis that spillover to the region.
  • Additionally, Baidu’s launch of its ChatGpt-like Ernie disappointed market as its share price slumped 6.4%.
  • Back home, in line with the regional downtrend, the FBM KLCI declined to just above the 1,390 level due to persistent selling on Banks, Telco and Energy stocks.
  • For today, a rebound is in the offing buoyed by the positive performance on Wall Street hence expect the index to hover within the 1,390-1,405 range on broad based accumulation.
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Daily Market Report (16 March 2023)
Daily Market Report (16 March 2023)
  • Wall Street closed off lows after a choppy session sparked by the banking crisis that is spreading to Europe with Credit Swiss being the latest to be hit by liquidity squeeze.
  • However, reports of pump priming by its shareholders eased fears as bargain hunting emerged.
  • US inflation for February that came in within expectation further injected some confidence that the Feds will be more lenient with interest rates hike next week.
  • As such, the DJI Average lost 281 points while the Nasdaq added 6 points as the US 10-year yield ended lower at 3.46%.
  • In Hong Kong, stocks rebounded as the benchmark HSI gained 292 points on improved China’s economic activity for 1Q2023 coupled with the easing worries on the US banking crisis.
  • Back home, the FBM KLCI also rebounded amid some caution as it closed above the 1,400 mark from broad-based buying.
  • Nonetheless, we reckon regional equities to face with some headwinds today as most major futures are trading on a mixed note at time of writing.
  • In view of this, we believe the local bourse may not be spared as the index may break below the 1,400 again with 1,385/90 as the immediate support.
  • However, we advocate investors to accumulate on weakness.
  • Meanwhile, crude oil prices were also affected by the banking crisis as the Brent crude declined to a 52-week low at below US$74/barrel.
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Daily Market Report (15 March 2023)
Daily Market Report (15 March 2023)
  • Wall Street staged a relief rally as traders are betting that a contagion from recent bank failures may have been averted.
  • In addition, the latest CPI data came in within expectations suggesting the Federal Reserve may be less aggressive with rate hike.
  • As such, the DJI Average jumped 336 points while the Nasdaq added 239 points with the US 10-year yield edged higher at 3.69%.
  • In Hong Kong, shares tumbled with the HSI declined by 448 points as the market was spooked by the collapse of Silicon Valley Bank and that HSBC will buy SVB’s subsidiary that saw HSBC share price dropped by almost 5%.
  • On the home front, the FBM KLCI dipped below the 1,400 level attributed to broad-based selling amid the regional bloodbath as a knee jerk reaction to the bank failures in the US.
  • Nonetheless, we reckon bargain hunting to emerge today on hopes that he Feds will be less reluctant to hike rates now thus expect buying to return on Banks and Telcos stocks today.
  • As such, we believe the index to see a rebound today and expect it to hover between the 1,400-1,415 range.
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Daily Market Report (14 March 2023)
Daily Market Report (14 March 2023)
  • Wall Street ended mixed after a choppy session as the US banking sector is under scrutiny following the collapse of SVB and Signature Bank.
  • With traders becoming less risk averse, there was a flight to safety into bonds thus pushing the US 10-year yield down to 3.45% with hopes that the Feds may be less reluctant to hike rates.
  • Though the US banking sector is experiencing some temporary reprieve, we reckon sentiment remains fragile.
  • As such, the DJI Average lost 90 points while the Nasdaq gained almost 50 points.
  • Over in Hong Kong, the HSI staged a strong rebound by adding 376 points on bullish views of Chinese tech giant earnings coupled with the prospects that the Feds may be less aggressive with rates hike.
  • On the domestic front, the FBM KLCI closed off low to end at just above the 1,420 level.
  • We reckon bargain hunting activities should emerge today with interests on the Banks and Telcos hence expect the index to trend within the 1,420-1,435 range today.
  • Meanwhile, we noticed that Gold price jumped to US$1,911/oz as investors continue to look at safer asset class which should be positive for Bahvest along with Poh Kong and Tomei.
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