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.
