Daily Market Report (1 June 2023)
- Wall Street declined as negotiation on the US debt ceiling seems to have hit a snag creating concerns that more time may be required before an agreement can be achieved.
- Nonetheless, many remain confident that a deal will be struck by today before the deadline.
- As a result, the DJI Average closed 134 points lower with the Nasdaq losing 82 points as the US 10-year yield ended lower at 3.646%.
- Over in Hong Kong, the HSI tumbled 361 points after reports that China’s manufacturing activities contracted igniting worries of its economic recovery.
- The HSI so far declined by 19.6% YTD from its high in January.
- On the home front, the FBM KLCI dropped to a 6-month low after breaking its 1,390 support level amid a weak regional performance as selling intensified on both Plantation and Energy stocks.
- We reckon a swift rebound to happen otherwise the index may be stuck in a prolonged consolidation phase.
- Therefore, we expect the index to hover within the 1,390-1,400 range today and see the Banks as excellent value propositions.
