Daily Market Report (14 June 2022)

  • Sell-down on Wall Street intensified on fears of more aggressive rate hike by the Federal Reserves this week.
  • As a result, all 3 major indices closed near to their 52-week lows. The DJI Average lost 876 points while the Nasdaq declined by 531 points as the US 10-year yield edged past the 3.36%.
  • On the home front, the FBM KLCI dipped to its 52-week low following a decline of almost 110 points since end-May this year.
  • In view of the drastic sell-down on Wall Street, we reckon trading on the local bourse to remain cautious today.
  • Therefore, we expect the index to possibly test the 1,450 level before bargain hunting activities to emerge. As such, we believe the index to trend within the 1,450-1,470 range today.
  • Meanwhile, the crude palm oil closed lower at RM6,150/tonne due to weaker demand.