Daily Market Report (22 January 2024)
- Wall Street ended higher as traders chose to focus on the positives namely a solid labour market and robust economy ignoring the fact that the Federal Reserve may prolong prevailing high interest rates environment.
- Thus, the DJI Average jumped by 395 points while the Nasdaq added 295 points as the US 10-year yield dipped marginally to 4.13%.
- In Hong Kong, the HSI maintained its weakness as global funds are shunning the market in the absence of any stimulus from China so far despite valuations have fallen to an all-time low.
- Back home, the FBM KLCI rebounded following a correction from the 1,500 level a week before.
- Although bargain hunting activities were apparent, market undertone remains cautious with many investors adopting a wait and see attitude.
- Meanwhile, the contagion from the small caps seems limited to a selected few and may not be as bad as initially feared.
- For today, we believe the index to hover within the 1,485-1,495 range.
- Plantation stocks may be in focus today as the CPO has rallied to almost the RM4,000/tonne mark due to demand from China for the forthcoming Chinese New Year.
