Daily Market Report (15 Sept 2021)
- It was a rocky day for US equities as all three major indices closed at negative territory yesterday as many feared that the US economy may not be as strong as initially expected.
- The DJI Average lost 292 points to around the 34,580 while the Nasdaq declined 68 points to just above the 15,000 level.
- Meanwhile, sentiments on the local bourse turned cautious as news on interest waiver under loan moratorium and windfall tax emerged.
- We reckon the selling was overdone as impact from the proposed interest waiver may not be that significant on banks as it will be only for 4Q21.
- While details remain sketchy, we believe the timing of a windfall tax on glove and plantation companies may be off as consensus see earnings for both to peak this year amid the declining selling prices going forward.
- Therefore, we feel some bargain hunting to emerge and expect the index to trend within the 1,560-1,570 range today.
