Daily Market Report (24 May 2023)
- Wall Street fell as discussion on the US debt ceiling continues to drag on without any outcome in sight.
- As a result, the DJI Average lost 231 points while the Nasdaq declined by 160 points notwithstanding the US 10-year yield closed lower at 3.698%.
- Similarly, Hong Kong stocks also ended lower as the HSI declined by 247 points as the protracted debt ceiling negotiations and heightening tension between China and the US continue to weigh on sentiment.
- Amid the weakness, pharmaceutical stocks surged as the Chinese authorities said that more vaccines are made available to curb the new Covid wave.
- Back home, the FBM KLCI closed lower in the absence of any bargain hunting activities. The sell-down on heavyweights was broad-based as sentiment was affected by regional weaknesses.
- For today, we reckon the index to trend within the 1,405-1,415 range as investors may stay side-lined until the US resolves its debt ceiling woes.
- Meanwhile, strong demand drove crude oil prices higher as the Brent crude climbed closer to US$78/barrel.
