Market Reports

Daily Market Report (21 February 2023)
Daily Market Report (21 February 2023)
  • Wall Street was closed for Washington’s Birthday yesterday.
  • In Hong Kong, expectations of earnings upside attributed to China’s reopening saw the HSI added 167 points to almost the 20,900 mark.
  • Bargain hunting activities also played its part as the benchmark index had declined by 8.7% over the last 3 weeks.
  • Both Baidu and HSBC closed higher as earnings are anticipated to be solid.
  • Back home, the FBM KLCI fell to below the 1,475 level as sentiment remained cautious from the lack of fresh catalysts.
  • We believe trading on the local bourse to stay lackluster while waiting for the 2nd tabling of Budget 2023 this Friday.
  • As such, we reckon the index to trend within the 1,470-1,480 range today as bargain hunting on Banks may emerge ahead of the 4Q earnings reporting.
  • Meanwhile, a surge in global demand saw crude oil prices rebounded with the Brent crude jumped to US$84/barrel.
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Daily Market Report (20 February 2023)
Daily Market Report (20 February 2023)
  • Wall Street closed mixed as concerns over inflation and spike in rates continue to weigh on sentiment.
  • Therefore, despite the DJI Average added 130 points, the Nasdaq lost 68 points as the US 10-year yield eased lower to just below the 3.82% level.
  • In Hong Kong, the HSI slipped 268 points amid the escalating tension between the US and China with both Lockheed Martin and Raytheon Technologies were sanctioned and fined by China for supplying weapons to Taiwan.
  • On the home front, the FBM KLCI retreated to below the 1,480 mark attributed to broad-based selling especially on Tech related stocks.
  • For today we reckon trading on the local bourse to be subdued ahead of corporate earnings results announcements thus expect the index to hover within the 1,470-1,480 range today.
  • In view of a recovery in crude palm oil prices, we believe Plantation stocks should see some buying support today.
  • Meanwhile, crude prices continue to weaken on the back of stronger US$ and higher rates, as such the Brent crude eased to US$83/barrel from US$86 last week.
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Daily Market Report (17 February 2023)
Daily Market Report (17 February 2023)
  • Wall Street retreated on more inflation worries following the release of a higher than expected producer price index coupled with a lower unemployment claims.
  • As a result, the DJI Average declined by 431 points while the Nasdaq lost 215 points as the US 10-year yield closed higher at above the 3.86% level.
  • Over in Hong Kong, the HSI rebounded to almost the 21,000 mark over reports that China may boost consumption via injection of liquidity possibly by lowering the banks’ reserve requirement ratio.
  • Back home, the FBM KLCI closed on a weak note due to profit taking activities after a positive opening as the index closed below the 1,485 level.
  • In view of Wall Street’s performance overnight, we reckon regional markets to experience heighten volatility hence should add some pressure on the local bourse as we anticipate the benchmark index to trend between 1,480-1,490 range today.
  • We reckon Tech stocks may face with some headwinds today on the back of the surge in Treasury yields in the US.
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Daily Market Report (16 February 2023)
Daily Market Report (16 February 2023)
  • Wall Street reversed earlier losses to end in positive territory as sentiment turned upbeat following the release of a higher than expected retail sales for January despite inflation remains a sticky issue.
  • As a result, the DJI Average was up by 39 points while the Nasdaq closed 110 points higher as the US 10-year yield edged higher at 3.8%.
  • In Hong Kong, sentiment remains spooked by the US inflationary pressure and interest rates worries as the HSI dipped by another 301 points to close at a 6-week low.
  • Back home, the FBM KLCI closed on a high following an indifferent opening attributed to last minute buying again particularly on Telcos stocks.
  • Nonetheless, we reckon market undertone is still cautious amid a rotational accumulation of blue chips.
  • Therefore, we see the benchmark index to hover between the 1,485-1,495 range today while waiting for the second tabling of Budget 2023 slated for next Friday which should see more activities for the Construction sector to revive the nation’s economy.
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Daily Market Report (15 February 2023)
Daily Market Report (15 February 2023)
  • Wall Street closed on a mixed note following a higher than expected January’s consumer price index (CPI) heightening concerns of more rate hikes by the Federal Reserves going forward.
  • The DJI Average lost 157 points after a choppy session while the Nasdaq added 68 points as the US 10-year yield inched higher to 3.75%.
  • Over in Hong Kong, the downtrend of the benchmark HSI continued as it declined 51 points or a 1-month low amid more outflow of funds.
  • Meanwhile, the Hong Kong Monetary Authority (HKMA) mopped up HK$4.22bn in local currency to stabilize the HK$.
  • On the domestic front, the FBM KLCI surged past the 1,480 mark attributed to accumulation of blue chips by foreign funds.
  • We reckon such bargain hunting activities to continue ahead of the earnings season later this month as many are expecting corporate Malaysia to churn out decent earnings growth for 2022.
  • In view of the mixed performance in the US overnight, we reckon flight of funds may return hence anticipate the index to hover between the 1,475-1,490 range today with focus on the Banks today.
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