Daily Market Report (2 January 2024)
- Wall Street closed lower following a strong showing amid the Santa Claus rally recently.
- For 2023, all 3 major indices made a sharp recovery with the DJI Average gaining 13.7% while the Nasdaq jumped 43.4% as the S&P 500 ended 24.2% higher.
- Going forward, interest rates will be the focus of fund flows on anticipation when the Fed will ease its stance.
- In Hong Kong, the HSI was flat at just above the 17,000 level to end 14% lower year-on-year.
- However, we notice foreign funds are set to make a massive return on Hong Kong stocks as many deem their valuation as highly enticing.
- Back home, the FBM KLCI ended 2023 at just below 1,455.
- At current levels, market valuation is estimated at around the 14x range which offer decent value proposition hence we reckon flow of foreign funds to persists into the local bourse amid a strengthening MYR that dipped below the 4.60 mark against the US$.
- For today, we believe the index to hover within the 1,455- 1,465 range with Banks to remain as the main focus.
