Daily Market Report (2 June 2023)
- Wall Street gets a reprieve to closed firmer after the US House passed a debt ceiling bill which is crucial to avoid a default.
- The DJI Average gained 153 points while the Nasdaq added 166 points as the US 10-year yield eased further to 3.601%.
- Meanwhile in Hong Kong, the HSI ended 17 points lower as sentiment remained affected by worries over China’s recovery and waning expectations of the stimulus packages to revive economic activities.
- Back home, the FBM KLCI continued to trend lower as selling gained momentum pushing the index to a YTD low.
- Despite expectations of bargain hunting activities, weak market undertone further deters any meaningful accumulation as investors preferred to remain side-lined.
- Nonetheless, we reckon some buying may emerge following the positive development on the debt ceiling hence anticipate the index to hover within the 1,385-1,395 range today.
- Again, we advocate Banks as ripe for pickings as most are trending at a 6-month low currently despite the decent performance for the 1Q2023.
