Daily Market Report (27 October 2023)
- Wall Street slumped as traders were largely unimpressed with the latest batch of earnings from large tech companies and expect the remaining ones namely Amazon and Apple, likely to struggle amid the weakening US economy.
- As a result, the DJI Average lost 252 points while the Nasdaq declined by 226 points despite the US 10-year yield easing to 4.849%.
- Over in Hong Kong, the HSI dipped marginally but maintain above the 17,000 threshold as traders are waiting for additional stimulus which currently are lacking from China.
- Meanwhile, the sell-off in sportswear maker Li Ning further stokes worries over the strength of consumer consumption in China.
- Back home, the FBM KLCI ended in negative territory due to last minute selling activities.
- As expected, the local bourse performance has been uninspiring due to the absence of fresh leads and we anticipate the same for today as the return of foreign funds seems to be drying up.
- Nonetheless, we believe funds diversification to be on-going and we envisage the emerging markets to benefit going forward.
- For today, we foresee the index to trend within the 1,435-1,445 range.
