Daily Market Report (25 May 2023)
- Wall Street tumbled as sentiment remains stressed amid the ongoing negotiations on the US debt ceiling with no signs of an agreement soon.
- As such, the DJI Average declined by 256 points while the Nasdaq fell 77 points as the US 10-year yield jumped to a 3-month high at 3.744%.
- In Hong Kong, the HSI lost 315 points to a 2-month low as traders remain spooked by the US debt ceiling impasse coupled with the weak Chinese markets.
- Headwinds on tech stocks further pressured the broader sector, in particular news of Alibaba laying off 7% of its work force.
- On the domestic front, the FBM KLCI remained stuck within a narrow trading range before ending below the 1,410 level in the absence of fresh catalysts.
- Nonetheless, we are hopeful that bargain hunting activities to emerge, especially on the Banks as we expect earnings from the Banks over the next few days to remain decent.
- Despite the prevailing weak market undertone, we anticipate the index to possibly trend within the 1,410-1420 range today.
