Daily Market Report (2 March 2023)
- Wall Street closed mixed on concerns that the Federal Reserves may look at a steeper rate hike as price disinflation is losing steam in the US.
- Despite the DJI Average added 5 points, the Nasdaq declined by 76 points with the US 10-year yield edged higher to above 3.99%.
- Over in Hong Kong, the HSI broke out from its slump as it added 834 points on the back of strong economic data from China suggesting a strong economic recovery.
- As for the local bourse, the FBM KLCI fell to just above the 1,450 level despite the regional improvements.
- Though we expect bargain hunting activities to emerge anytime soon, overall sentiment remains fragile following the sell-down 2 weeks ago.
- We suspect investors are waiting for BNM Monetary Policy Committee meeting on 8 & 9 this month whether the OPR would be revised higher.
- For now, we are betting that BNM may refrain from hiking the OPR before the FOMC meeting on 21 & 22 March.
- Amid prevailing uncertainties, we reckon the index to trend between the 1,445-1,455 range today as the Banks and Telco stocks remain as our favourites.
