Daily Market Report (14 March 2023)

  • Wall Street ended mixed after a choppy session as the US banking sector is under scrutiny following the collapse of SVB and Signature Bank.
  • With traders becoming less risk averse, there was a flight to safety into bonds thus pushing the US 10-year yield down to 3.45% with hopes that the Feds may be less reluctant to hike rates.
  • Though the US banking sector is experiencing some temporary reprieve, we reckon sentiment remains fragile.
  • As such, the DJI Average lost 90 points while the Nasdaq gained almost 50 points.
  • Over in Hong Kong, the HSI staged a strong rebound by adding 376 points on bullish views of Chinese tech giant earnings coupled with the prospects that the Feds may be less aggressive with rates hike.
  • On the domestic front, the FBM KLCI closed off low to end at just above the 1,420 level.
  • We reckon bargain hunting activities should emerge today with interests on the Banks and Telcos hence expect the index to trend within the 1,420-1,435 range today.
  • Meanwhile, we noticed that Gold price jumped to US$1,911/oz as investors continue to look at safer asset class which should be positive for Bahvest along with Poh Kong and Tomei.