Daily Market Report (25 October 2023)
- Wall Street closed firmer spurred on by a spate of strong corporate earnings and that the US 10-year yield eased to 4.819% after surpassing 5% a couple of days ago.
- As a result, the DJI Average added 205 points while the Nasdaq jumped by 121 points.
- Over in Hong Kong, the HSI declined by 181 points to below the 17,000 mark which is a YTD low despite some buying by the Chinese sovereign fund as sentiment remains very much impacted by China’s anemic economic growth coupled with the weakening Yuan against the US$.
- Back home, the FBM KLCI pared earlier losses but remained in negative territory as the market undertone has turned cautious despite an improving regional performance.
- Nonetheless, we expect a swift rebound for the index to avoid a prolonged consolidation. Therefore, we anticipate the index to trend within the 1,435-1,445 range today as broad-base accumulation may emerge.
- Meanwhile, the easing of crude oil prices should also lend some welcome reprieve attributed to additional supplies from Venezuela hence pushed the Brent crude to US$88/barrel from US$93/barrel last week.
