Daily Market Report (7 February 2024)
  • Wall Street ended higher as traders are assessing the latest batch of corporate earnings and the Federal Reserve’s timeline of easing interest rates which will be later than the highly anticipated March.
  • As a result, the DJI Average jumped by 141 points while the Nasdaq added 11 points with the US 10-year yield easing to 4.09%.
  • Over in Hong Kong, the HSI rallied to close 627 points higher at above the 16,000 level amid interventions from China’s sovereign fund coupled with new curbs on short selling activities.
  • At the home front, the FBM KLCI closed in positive territory following a rather volatile afternoon session illustrating a strong market undertone.
  • Despite the persistent buying from foreign funds, we noticed that retail participation may have dried out as depicted by the lower daily volume of late.
  • Nonetheless, we are confident that funds flowing into the blue chips will eventually spill over to the smaller caps plus the positive intervention from China in shoring up both the Chinese and Kong Kong markets.
  • Thus, we expect the index to hover within the 1,510-1,520 range today.
Daily Market Report (6 February 2024)
  • Wall Street ended lower after the US 10-year Treasury note was gained more than 13 basis points to 4.166% as investors assessed a fresh batch of strong economic data that suggested rates may stay elevated for longer than anticipated.
  • The Dow dived 274 points (0.71%) while the Nasdaq erased 32.3 points (-0.2%).
  • In Asia, major indices closed lower as the better-than-expected US job report diminished any possibilities of an immediate interest rate cut by the Fed.
  • The HK market ended lower with selling on real estate and tech stocks.
  • The HSI fell 23.5 points (0.15%). 
  • On the domestic front, the FBM KLCI finished lower due to profit taking activities.
  • Nonetheless, we interpret this as a positive correction, enabling the market to absorb the recent rally.
  • We expect the buying on local stocks to continue given the attractive valuations and persistent support from foreign funds.
  • As such, we anticipate the benchmark index to trend within the range of 1,510-1,520 for today.
Daily Market Report (5 February 2024)
  • Wall Street finished higher on strong tech earnings while January jobs report came in much better than expected.
  • The Dow rose 135 points (0.35%) while the Nasdaq surged 267 points (1.7%).
  • In Asia, key indices closed higher following positive cue from global equities overnight.
  • However, HK stocks in HK remained under pressure due massive selling on real estate stocks.
  • As a result, the HSI fell 33 points (0.2%). 
  • As for the local bourse, the FBM KLCI closed below its day-high due to late selling.
  • Nonetheless the benchmark index was able to finish on a positive note.
  • We reckon the market undertone is still cautious due to the increasing global volatility, however, the valuation of the FBM KLCI remains attractive, trading at CY24 forward PER of 14.5x against its 5-year average of 17x.
  • Thus, we anticipate the benchmark index to trend within the range of 1,510-1,520 for today.
Daily Market Report (2 February 2024)
  • Wall Street finished higher as bargain hunting emerged particularly on tech stocks following the earlier sell-off.
  • The DJIA gained 60 points (0.16%), while Nasdaq lost 55 points (0.36%) led by selling on Intel.
  • The Dow rose 370 points (0.97%) while the Nasdaq surged 198 points (1.3%).
  • In Asia, key indices closed lower following negative cue from global equities overnight as the US Fed quashed expectations for interest rate cuts in March 2024.
  • Nonetheless, bargain hunting activities are seen in HK given their cheap valuations with the with led to a 76 points or 0.5% rise in the HSI. 
  • As for the local bourse, the FBM KLCI close relatively flat on Wednesday impacted by the cautious sentiment across the region.
  • We remain vigilant and expect benchmark index to stay in consolidation mode at this juncture until more clarity surfaces.
  • Thus, we anticipate the FBM KLCI to trend within the range of 1,510-1,520 for today.
Daily Market Report (31 January 2024)
  • Wall Street closed mixed on the back of a mixed bag of corporate earnings and strong labour market as traders wait for the outcome from the FOMC latest meeting.
  • As such, while the DJI Average gained 134 points, the Nasdaq lost 118 points despite the US 10-year yield continuing to slide hovering at 4.036%.
  • In Hong Kong, the HSI declined by 374 points to end below the 16,000 level impacted by Evergrande’s liquidation order coupled with concerns on corporate earnings outlook.
  • Back home, the FBM KLCI ended lower after a solid opening attributed to some profit taking activities and impacts from the sharp drop in Hong Kong equities.
  • Nonetheless, we reckon this is only an intermittent correction and will not distract recent inflows of foreign funds thus recent dips offer excellent opportunities to bargain hunt.
  • For today, we believe the index to hover within the 1,510-1,520 range with interests on the Financials and Plantation counters to persist.