Daily Market Report (18 September 2023)

  • Wall Street retreated as traders are looking ahead for the Feds move on interest rates this Wednesday following a mixed batch of economic data.
  • Though it is widely expected that the Feds will maintain the rates for now, recent headline inflationary figures still showed a slight expansion.
  • As such, the DJI Average lost 289 points while the Nasdaq declined by 218 points as the US 10-year yield inched higher to 4.336%.
  • Meanwhile in Hong Kong, the HSI added 135 points after China’s move to cut the Statutory Reserve Requirement (SRR) last Friday to inject more liquidity into the financial system.
  • China’s August retail sales and factory output that exceeded expectation further boosted sentiment.
  • At the local front, the FBM KLCI finally tested the 1,460 mark or a 6-month high attributed to persistent accumulation by foreign funds.
  • We believe this level should be breached anytime soon as valuation of the local blue chips remains low.
  • Despite the headwinds from Wall Street, we expect the index to continue with its upward trajectory and expect it to hover between the 1,460-1,470 range today.