Daily Market Report (16 August 2023)
- Wall Street ended on a weak note as sentiment is affected by the slowdown in China coupled with the condition of the Banking sector.
- Recent downgrade on the US banks saw more sell-down on the financial stocks as the DJI Average 361 points while the Nasdaq declined by 157 points on the back of higher US 10-year yield which topped 4.219% or a YTD high.
- In Hong Kong, the HSI continued with its slide as the index lost 192 points on pessimism of China’s slowdown and that the latest 15bps cut by PBOC may not be enough to boost the Chinese economy.
- Weak domestic spending and rising unemployment continue to plague China in the absence of desire stimulus from the Government.
- At home, the FBM KLCI closed higher amid a mixed regional performance as buying support from foreign funds remains obvious.
- Nonetheless, we reckon sentiment may turn cautious today in view of the headwinds from both China and the US.
- With the index currently hovering around a 6-month high, we reckon some profit taking activities may emerge hence expect the index to trend between the 1,455-1,465 range today.
