Daily Market Report (20 Sept 2021)
- Wall Street weakened on the back of increasing Covid cases in the US coupled with traders’ anticipation of the Federal Reserves’ tapering on bond buying ahead of its meeting tomorrow.
- The DJI Average lost 166 points to below the 34,600 level whilst the Nasdaq declined by 138 points to almost the 15,000 mark.
- As for the local bourse, recent correction has been steep as the FBM KLCI lost around 3% from its recent high exacerbated by news of windfall taxes and waiving of interest.
- Therefore, we reckon sentiments to remain dampened until more clarity surfaces.
- Nonetheless, we believe bargain hunting may emerge as the country’s economy is slowly reopening amid Covid cases had declined to a 2-month low.
- As we enter the 4Q, one can expect some portfolio realignments and window dressing activities to occur.
- For today, we anticipate the index to trend around the 1,550-1,560 range.
