Daily Market Report (19 Jan 2021)
Wall Street was closed yesterday but Biden’s inauguration on Wednesday may spur some buying interests going forward. Already the DJI Average futures is trending at positive levels.
As such, we reckon regional markets to perform better today after several days of lacklustre performance. On the local front, we believe the FBM KLCI to rebound after the decline due to expectations of cut in OPR (overnight policy rate) when Bank Negara meets this Wednesday.
Personally, we expect the OPR to be maintained as the impact is rather muted at this juncture. Meanwhile, we see Tan Sri Muhyiddin additional aid for the people’s welfare is positive esp. the tourism related segments and the RM100m for private hospitals for Covid-19 treatment but the discount to certain business sectors may have marginal negative effects on Tenaga.
Nonetheless, we expect the index to re-test the 1,620 level today.
