Daily Market Report (18 August 2023)
- Wall Street closed lower as traders turned cautious by the Fed’s stance to hike rates following the disclosure of its minutes coupled with the US resilient economic data as the US 10-year yield edged higher at 4.284%.
- As a result, the DJI Average after a strong opening, lost 291 points while the Nasdaq closed 158 points lower.
- In Hong Kong, the HSI managed to recoup earlier losses to end yesterday’s session on a flat note due to some bargain hunting activities.
- Nonetheless, sentiment remains wary of China’s economic growth and the turmoil within the property sector.
- Back home, the FBM KLCI declined to below the 1,450 level as profit taking activities emerged after a 3-day uptrend.
- We suspect the selling may be from foreign funds as it was broad-based amid regional weaknesses.
- Though we reckon market’s undertone has turned cautious attributed mainly to the headwinds from both China and the US, the index needs to show an immediate rebound to avoid being trap into another prolonged consolidation phase.
- For today, we expect the index to hover within the 1,445-1,455 range.
