Daily Market Report (26 January 2024)
- Wall Street finished higher as data indicated continued economic growth.
- The DJIA and Nasdaq rose 243 points (0.6%) and 29 points (0.2%) respectively.
- In Asia, key indices mostly ended higher with strong gains in China and Hong Kong.
- Sentiment was buoyed by the PRC Government's commitment to providing additional economic support, which is expected to enhance liquidity in the banking system.
- The PBOC will slash the reserve requirement ratio by 50 basis points, releasing about US$140bn of cash to support the economy.
- As a result, the HSI rose 313 points or 2% to finish above the 16,000 level.
- On the domestic front, the FBM KLCI continued to trend higher, added 8 points (0.5%) to finish at 1,504 with broad based buying.
- We reckon if the index can sustain above the 1,500 level for an extended period, we anticipate stronger potential upwards in the near term.
- With the improvement of global equities, we anticipate that the FBM KLCI will trend higher within the range of 1,500-1,510 for today.
