Daily Market Report (15 March 2023)

  • Wall Street staged a relief rally as traders are betting that a contagion from recent bank failures may have been averted.
  • In addition, the latest CPI data came in within expectations suggesting the Federal Reserve may be less aggressive with rate hike.
  • As such, the DJI Average jumped 336 points while the Nasdaq added 239 points with the US 10-year yield edged higher at 3.69%.
  • In Hong Kong, shares tumbled with the HSI declined by 448 points as the market was spooked by the collapse of Silicon Valley Bank and that HSBC will buy SVB’s subsidiary that saw HSBC share price dropped by almost 5%.
  • On the home front, the FBM KLCI dipped below the 1,400 level attributed to broad-based selling amid the regional bloodbath as a knee jerk reaction to the bank failures in the US.
  • Nonetheless, we reckon bargain hunting to emerge today on hopes that he Feds will be less reluctant to hike rates now thus expect buying to return on Banks and Telcos stocks today.
  • As such, we believe the index to see a rebound today and expect it to hover between the 1,400-1,415 range.