Daily Market Report (17 Apr 2020)
- Wall Street recovered on hopes that the US economy will be reopened sooner rather than later.
- Trump in his usual defiant self, has declared that the pandemic in the US has peaked and may introduce to reopen the US economy in several stages.
- Meanwhile, US added another 28,000 new cases yesterday pushing Covid-19 cases to 680,000.
- Anyhow, it is widely anticipated that regional markets to be firmer today following the rebound on Wall Street.
- Yesterday the FBM KLCI at one point was hovering close to 1,400 but succumbed to some late selling activities pushing the index to close flat hence we believe the downside bias to be greater than otherwise for today.
- Though there may be a chance for the index to re-test the 1,390 mark we expect selling pressure to emerge with immediate support at the 1,380 level.
- We advise investors to remain cautious and sell into strength.
