Daily Market Report (13 October 2023)
- Wall Street closed lower as the CPI figure for September showed no signs of weakening and as a result, pushed the US 10-year yield higher to 4.697% and that the Federal Reserves may need to hike rates next month.
- As such, the DJI Average declined 174 points while the Nasdaq dipped by 75 points.
- In Hong Kong, the HSI jumped 345 points higher underpinned by the emergence of Central Huijin which is part of China’s Sovereign wealth fund, mopping up shares of several banks namely ICBC, Construction Bank, Bank of China and Agriculture Bank.
- On the local front, the FBMKLCI maintained its uptrend possibly attributed to firm buying support from local institutions.
- As we wait for the return of Dato Seri Anwar to table Budget 2024 later today, we remain quite optimistic that there may be some pleasant surprises in store.
- Nonetheless, we expect the benchmark index to hover within the 1,440-1,450 range today.
- Again, we advocate investors to focus on value stocks like the Banks and Telcos plus sectors like Construction, Industrial Products and Property as dark horses.
