Daily Market Report (17 April 2024)
- Wall Street ended mixed amid a choppy session as sentiment remains cautious whereby traders are trying to balance the narratives on interest rates coupled with the tension in the Middle East.
- As such, though the DJI Average gained 64 points, the Nasdaq lost 20 points as the US 10-year yield inched higher at 4.669%.
- In Hong Kong, the HSI slumped to hover precariously just above the 16,000 level as China’s higher than expected economic growth for the 1Q2024 failed to convince investors as both the retail and industrial output data came in lower than anticipated.
- Back home, the FBM KLCI saw more selling on blue chips possibly by foreign funds as the index dipped below the 1,540 mark.
- The selling was broad-based in line with the regional bloodbath.
- We believe yesterday’s selling was more of a knee jerk reaction to the escalation tension in the Middle East amid the flight of funds to other asset classes.
- Therefore, we believe some bargain hunting activities to emerge anytime soon and expect the index to trend within the 1,530-1,540 range today.
