Daily Market Report (26 May 2023)
- It was another interesting day on Wall Street as traders were split between the US debt ceiling negotiations which is still in progress and corporate earnings.
- Reflecting the approaching US default deadline, the DJI Average fell 35 points while the Nasdaq jumped by 214 points buoyed by solid earnings from Nvidia that spurred other semiconductor stocks higher as well.
- Meanwhile, the US 10-year yield edged higher at 3.823%.
- Over in Hong Kong, equities slumped 369 points or a YTD low as sentiment remain affected by the US debt ceiling impasse coupled with weak results from Lenovo and Xpeng amid a slower recovery in China.
- Back home, the FBM KLCI continued with its downtrend and is currently hovering just above the 1,400 level.
- The highly anticipated bargain hunting did not occur as investors remain sidelined spooked by the regional weaknesses.
- Nonetheless, we reckon buying activities to emerge if the index dips to around the 1,390 mark.
- Thus, for today we expect the index to trend within the 1,400-1,410 range with the Banks ripe for pickings.
