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.