Daily Market Report (24 February 2023)
- Wall Street ended higher after volatile trading sessions as investors remained concerned about the path of the US Federal Reserve’s rate hikes.
- The Dow gained 109 points as the US 10-year yield eased 3 basis points at 3.921%.
- The US Fed indicated that inflation is still above the central bank’s target of 2%, although data has shown some decline in the monthly pace of price increases.
- In HK, the HSI ended marginally lower following a heavy regional selldown as investors responded negatively to the FOMC meeting minutes.
- Back home, FBM KLCI fell by 0.43% to 1,457.65 in a lacklustre market ahead of the re-tabling of Budget 2023 today.
- We reckon the recent selldown offers more potential upside as the FBM KLCI’s forward PER fell to below 13x, far from its as compared with its 5 years average of around 18x.
- Hence, we anticipate bargain hunting to emerge and reckon the benchmark index to stage a rebound today, trending within the 1,460-1,475 range.
- Buying interests may return to Telco stocks after a strong selldown yesterday.
