Daily Market Report (15 May 2023)
Mon, May 15, 2023 7:13 AM
- As Wall Street is facing a myriad of economic concerns, the latest to hog the limelight would be the US debt ceiling which many expect a blow-out by early June if it’s not raised.
- A latest check already indicated that the US total debt has surpassed the US$31.4 trillion ceiling now at US$31.7 trillion as negotiations will resume this week.
- As a result, trading on Wall Street has been cautious as the DJI Average eased 9 points while the Nasdaq declined by 44 points as the US 10-year yield inched slightly higher at 3.463%.
- In Hong Kong, sentiment was affected by the slowdown in China’s credit growth pointing towards a possible slowdown in economic activities going forward.
- Thus, the HSI lost 116 points to around the 19,600 level dragging its consolidation longer since the mid-April downtrend.
- Back home, the FBM KLCI ended in negative territory impacted by the weak regional performance.
- We were surprised by the persistent selling of banking stocks of late despite expectations of a solid performance from the sector this year.
- Therefore, we reckon banks should be ripe for some accumulation soon.
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