Daily Market Report (22 August 2023)
- Wall Street closed on a mixed note with traders undergoing a self-denial phase as the Nasdaq jumped 207 points despite the US 10-year yield touching 4.342% which is more than a 15-year high.
- Tech shares historically struggle in high-rate environment making yesterday’s performance rather unusual.
- Meanwhile in Hong Kong, the HSI slumped to around the 17,600 level or a 9-month low as market participants were unconvinced by the latest measures unveiled by regulators to boost the ailing Chinese economy and equity market.
- Back home, the FBM KLCI closed higher on the back of solid buying support from foreign funds as the index edged past the 1,450 mark.
- We believe the local bourse is in a good performing phase currently underpinned by the shift in sentiment that has turned more optimistic.
- Judging by the immediate rebound of the benchmark index, we believe the index may trend higher thus expect it to hover between the 1,450-1,460 range today with focus possibly back to the financial and construction related stocks.
