Daily Market Report (20 December 2023)
- The Santa Claus rally continues on Wall Street fueled by recent remarks from the Federal Reserve on interest rates.
- Though recent uptrend have outpaced fundamentals, traders remain adamant that there are still legs for equities.
- The DJI Average rose 252 points while the Nasdaq added 98 points with the US 10-year yield easing slightly to 3.931%.
- In Hong Kong, the situation is less rosy as the HSI declined by 124 points with traders remain unconvinced of a recovery within China’s property sector.
- In addition, the recent earthquake in Gansu further weakened amongst the companies based there.
- Back home, the FBM KLCI maintained its steady progress to end on a flat note supported by mild accumulation of stocks.
- As mentioned, the 1,465 mark seems to be a tough resistance and if not broken decisively soon, we can expect the index to retrace below the 1,460 level again.
- For today, we expect the index to hover within the 1,460-1,470 range with interest returning to the Banks and Plantation stocks.
