Daily Market Report (13 January 2023)
- Wall Street closed on a positive note as the US CPI figure for December came in within expectations and that the Federal Reserves may scale back interest rate hikes.
- The DJI Average gained 217 points while the Nasdaq jumped by almost 70 points as the US 10-year yield eased further to around 3.44%.
- As for Hong Kong, the HSI added 78 points to above the 21,500 mark pushing YTD gain at almost 8.8%.
- Yesterday’s gain can be attributed mainly to the surge in BYD’s shares that was boosted by its entry into India’s EV space.
- Back home, the FBM KLCI was flat due to the lack of clear buying catalysts.
- Nonetheless, we reckon buyer should return today on the back of the cooling US inflation which should see the Ringgit strengthening against the USD.
- The Ringgit currently hovers at MYR4.36/USD which is a 6-month high.
- As such, we expect importers within the Consumer Product and Energy stocks should continue to trend higher as the Brent crude continues to rise on the back of weaker USD.
- Brent crude closed at almost USD 83.90/barrel.
