Daily Market Report (19 May 2023)
- Wall Street ended higher as traders are betting on a positive outcome from the ongoing negotiations regarding the US debt ceiling.
- As a result, the DJI Average gained 115 points while the Nasdaq jumped 188 points higher despite the US 10-year yield’s continuous climb currently at 3.651% or almost a 2-month high.
- Over in Hong Kong, the HSI added 167 points as traders are looking to more supportive government policies following a spate of disappointing economic data from China.
- As for the local bourse, the FBM KLCI closed in positive territory attributed to rotational plays on selected heavyweights despite still being stuck in a consolidation phase.
- In view of this, we reckon 1,430 is now a strong resistance for the index and must be broken decisively before looking at the next phase.
- We believe recent selling on the Banks has been largely unjustified and may see some bargain hunting activities on the sector hence anticipate the index to possibly trend within the 1,425-1,435 range today.
