Daily Market Report (23 December 2022)
- Wall Street tumbled as concerns over more rate hikes returned following strong economic showing in the US.
- Although all 3 major indices closed off their day’s low, the DJI Average lost almost 350 points while the Nasdaq declined by 233 points as the US 10-year yield inched marginally higher at 3.69%.
- Back home, the FBM KLCI finally closed positively as bargain hunting emerged despite market undertone remained jittery.
- Persistent selling by foreign funds has been rather surprising so far this month with a net outflow of around RM1.34bn albeit an improving political climate domestically.
- Nonetheless, we reckon sentiment to remain cautious as news that China may see a spike in Covid cases hence expect the index to possibly hover between the 1,460-1,470 range today.
- Meanwhile, the Brent crude price remained around the US$81/barrel as expectations that demand will improve during the winter period may see some accumulation on Oil & Gas stocks today.
