Market Reports

Daily Market Report (13 March 2023)
Daily Market Report (13 March 2023)
  • Wall Street declined further as traders were spooked by the closure of Silicon Valley Bank following losses in its bond portfolio plus several others that are crypto-focused reigniting worries of the global financial crisis in 2008 thus sparking a flight of funds to safety particularly government bonds pushing the US 10-year yield down to 3.7%.
  • As a result, the DJI Average lost 345 points while the Nasdaq tumbled by almost 200 points.
  • In Hong Kong, the HSI experienced another steep decline as it closed to a YTD low at around the 19,300 level as earnings woes from JD.com and AIA clouded earnings outlook. As such, investors are concerned that recent run-up may not be supported by fundamentals.
  • At home, the FBM KLCI dipped to a YTD low at just above the 1,430 mark.
  • Though the local bourse may experience some bargain hunting activities anytime soon as it is now at an oversold position, we reckon prevailing weak sentiment may see investors sidelined.
  • As such, we anticipate the index to trend within the 1,430-1,440 range today.
  • The only saving grace was that wage increase in the US has been lower than expected thus traders expect the Feds to be less aggressive in hiking rates hence all eyes will on FOMC next week.
Download
Daily Market Report (10 March 2023)
Daily Market Report (10 March 2023)
  • Wall Street closed sharply lower as sentiment turned negative on concerns that high interest rates and the Federal Reserves’ hawkish stance are to remain over a longer period.
  • As a result, the DJI Average lost 543 points while the Nasdaq declined by 238 points despite the US 10-year yield ended lower at 3.91%.
  • Over in Hong Kong, the HSI slumped 125 points to below the 20,000 level on concerns that the ongoing US/China tension will impact China’s access to the most advance technology that is bad news to the technology sector hence the sell-down on Chinese tech companies yesterday.
  • Back home, the FBM KLCI weakened to just below the 1,450 mark despite BNM’s decision to maintain the OPR which we deem as good news for the equity market.
  • Nonetheless, we suspect overall sentiment would still be determine by the FOMC meeting next Monday and Tuesday.
  • Meanwhile, reports that EPF contributors are allowed to use their Account 2 as collateral for personal loans applications should unlock some liquidity into the market that may act as a temporary reprieve to many with cashflow difficulties.
  • However, we expect trading should remain lackluster on the local bourse and expect the index to trend between the 1,450-1,460 range with some accumulation on the Construction and Telco related stocks today.
Download
Daily Market Report (9 March 2023)
Daily Market Report (9 March 2023)
  • Wall Street ended mixed as concerns over Jerome Powell’s comment of a prolonged high interest rates environment continue to spook traders.
  • As such, the DJI Average declined by 58 points while the Nasdaq rebounded by 46 points as the US 10-year yield inched higher at almost the 4.0% mark.
  • In Hong Kong, the sell-down on Hong Kong equities gathered pace on fresh concerns over China’s latest overhaul on regulation over the financial sectors.
  • As a result, the index lost a massive 483 points to end at just above the 20,000 level.
  • On the domestic front, the FBM KLCI maintained its lackluster performance as the index fell 4 points amid a weak regional performance.
  • For today, we reckon the index to remain stuck within a tight range of between 1,450-1,460.
  • Meanwhile, reports that the RM50-55bn High Speed Rail (HSR) project could be revived provided it is funded by the private sector should inject some excitement into the Construction sector.
  • Amongst others, we believe contractors namely Gamuda, YTL Corp, MRCB and IJM Corp could be the frontrunners for the project.
Download
Daily Market Report (8 March 2023)
Daily Market Report (8 March 2023)
  • Wall Street closed sharply lower after Federal Reserves Chair Jerome Powell suggested that interest rate needs to go higher and longer, fueling concerns that a larger rate hike during the next FOMC meeting on the 21 & 22 this month.
  • As a result, the DJI Average lost 575 points while the Nasdaq declined by 145 points with the US 10-year yield inched higher at 3.97%.
  • In Hong Kong, the HSI ended 69 points lower after a solid start as investors became wary of the escalating US-China tech rivalry after Beijing calls for self-sufficiency to counter sanctions by the US.
  • On the home front, the FBM KLCI gained 6 points from broad-based accumulation of Banks, Plantation and Telco stocks.
  • Nonetheless, we expect some headwinds on stocks today following the Feds rate commentary thus expect the index to trend between 1,450-1,460 range amid regional weaknesses.
  • Meanwhile, Oil & Gas stocks should again see some selling pressure following the decline in crude oil prices attributed to inventory build-up that saw the Brent crude to close USD3 lower at USD83/barrel.
Download
Daily Market Report (7 March 2023)
Daily Market Report (7 March 2023)
  • Wall Street closed mixed as sentiment remained cautious ahead of Federal Reserves’ Chairman Jerome Powell congressional testament today and tomorrow.
  • Though the DJI Average was up 40 points, the Nasdaq declined by 13 points as the US 10-year yield stayed at 3.96%.
  • In Hong Kong, the HSI added 36 points as investors were rather disappointed with a conservative economic growth target of 5% for China during the “Two Sessions” meeting over the weekend.
  • Nonetheless, many are expecting some additional stimulus by the new incoming Premier next week.
  • Back home, the FBM KLCI ended marginally lower attributed to some last minute selling activities namely on the Banks and Telco related stocks.
  • For today, we reckon sentiment to remain cautious as investors may opt to stay sidelined ahead of the Bank Negara’s MPC meeting over the next 2 days.
  • As such, we reckon trading to be lackluster today and expect the index to trend between the 1,450-1,460 range.
  • There may be some headwinds on the Oil & Gas stocks today as global demand is expected to wane due to the lower than anticipated China’s growth forecast.
Download