Daily Market Report (19 December 2023)
- Wall Street continued with its uptrend albeit at a slower pace as expectations may have hit the ceiling.
- Easing interest rates and economic growth continue to play their part although valuations may be the road bumps ahead.
- As such, the DJI Average closed flat while the Nasdaq jumped 91 points as the US 10-year yield climbed marginally to 3.935%.
- In Hong Kong, sentiment turned cautious as the HSI lost 163 points on concerns of China’s economic recovery.
- Meanwhile, Xpeng declined 6.7% following Alibaba’s intention to dispose of 25m of the EV maker US-listed shares.
- On the home front, the FBM KLCI made further progress to close at 1,465 or a 1-month high.
- We believe the flow of foreign funds to persist into the equity market thus expect the index to trend between the 1,460-1,470 range today.
- We noticed over the past 6 months, the 1,465 seems to be a strong resistance hence if this level is broken convincingly, we may see the index to possibly challenge the 1,500 level.
