Daily Market Report (27 February 2023)
- Wall Street closed broadly lower as concerns on inflation heightened following the release of a higher than expected personal consumption expenditure price index that may force the Federal Reserves to maintain high interest regime longer than anticipated.
- The DJI Average declined by 337 points while the Nasdaq lost 195 points as the US 10-year yield remained at almost 3.95%.
- In Hong Kong, the HSI slipped 341 points to its lowest level this year at just above the 20,000 mark due to a mixed bag of earnings from major Chinese tech companies coupled with strong headwinds from the US.
- Back home, the FBM KLCI ended flat from late buying activities spurred by the positive reaction to the re-tabled Budget 2023.
- We reckon sentiment on the local bourse to remain cautious mainly attributed to the US weakness but with some positive bias.
- Thus, we reckon the index to hover within the 1,455-1,465 range today with interest on the Banks, Construction and Telco sectors today.
