Daily Market Report (16 June 2022)

  • Wall Street closed sharply higher after more than a week of heavy selling as the Fed announces large rate hike to battle inflation.
  • The DJIA jumped over 300 points while Nasdaq ended 270 points higher after The U.S. Federal Reserve will raise its benchmark interest rate by 0.75% in an effort to fight high inflation.
  • Nonetheless, officials also cut their 2022 GDP growth to just 1.7%, down from 2.8% from March.
  • Back home, investors took profit following a sharp rise on Tuesday.
  • We reckon investor sentiment to remain soft for the moment due to external factors, nevertheless the FBM KLCI remained in oversold position after heavy selldowns in the past 2 weeks.
  • Hence, we anticipate some bargain hunting activities to emerge with the FBM KLCI to hover within the range of 1,460-1,490 for today.