Daily Market Report (19 February 2024)
- Wall Street retreated as hotter than anticipated inflation data spooked traders and that the Federal Reserve may delay the prospect of rate cuts.
- As such, the DJI Average lost 145 points while the Nasdaq declined by 130 points as the US 10-year yield edged slightly higher at 4.281%.
- In Hong Kong, the HSI maintained its uptrend by adding 395 points to above the 16,300 level buoyed by buying from local funds on big tech stocks that are deemed cheap at prevailing levels coupled with that the Hong Kong market remains underinvested by foreign funds.
- Back home, the FBM KLCI closed on an 18-month high as buying by foreign funds continues.
- In view of the US markets facing with numerous headwinds, it thus understandable that some funds will flow into this region to find some stability.
- Nonetheless, we noticed retail participation remains low and will improve this week when all are back to work.
- For today, we expect the index to hover within the 1,535-1,545 range.
