Daily Market Report (11 October 2023)
- Wall Street ended broadly higher as traders returned as buyers spurred by the declining yield as funds find their way into bonds which are deemed as safe haven amid the ongoing Israel/Hamas conflict.
- As a result, the DJI Average gained 135 points while the Nasdaq added 79 points as the US 10-year yield eased to 4.657%.
- In Hong Kong, the HSI closed 147 points higher buoyed by inflows of funds from mainland China and latest comment that the Feds may potentially pause its rate adjustments in November after its recent aggressive tightening.
- Back home, the FBM KLCI took us by surprise as it flew past the 1,430 mark with ease underpinned by foreign buying support across the region.
- We expect buying on the Banks to persist coupled with the Telco sector after the strong profit taking activities for the past month.
- Therefore, we believe the index to possibly scale higher and hover within the 1,435-1,445 range today in view of improving sentiment.
