Daily Market Report (21 February 2024)
- Wall Street ended on a weak note as prevailing high valuations remain as the main stumbling block.
- In addition to the widely expected delay in rate cut, traders are wary if US equities have the legs to trend higher.
- As such, the DJI Average lost 64 points while the Nasdaq declined by 145 points as the US 10-year yield eased marginally to 4.275%.
- In Hong Kong, the HSI after a weak opening, rebounded in the afternoon session following the 25bps cut in loan prime rate by Chinese lenders which is higher than initially expected to spur home purchases.
- At home, the FBM KLCI maintained its impressive performance as it closed above the 1,550 mark.
- This resembles a mini CNY rally as the index have added more than 40 points during the period.
- Though an intermittent correction may prevail, we believe the local bourse to sustain this solid performance as we march towards the 1,600 level.
- It is also heartening to see that retail presence is improving though actual participation is still low.
- For today, we expect the index to hover within the 1,550-1,560 range.
