Daily Market Report (28 August 2023)
- Wall Street closed higher after a volatile session, primarily due to bargain hunting activities following three days of selling.
- As a result, the DJI Average gained 247 points, while the S&P 500 and Nasdaq jumped by 29 and 127 points, respectively.
- Moving to Hong Kong, the HSI tumbled 256 points due to heavy selling across the region.
- Back home, the FBM KLCI managed to pare losses due to late buying.
- Nonetheless, the benchmark index ended in the red amid the regional sell-off.
- Despite the cautious sentiment, the support on the benchmark index stayed strong and we reckon the performance of FBM KLCI to remain steady given the cheap valuations.
- We expect bargain hunting activities to return today, with the FBM KLCI to trend within the range of 1,440-1,450.
- However, we anticipate some headwinds for the plantation sector may continue following the decline in CPO futures to below RM4,000 per tonne.
- Meanwhile, we believe investors might pick up banking stocks at lower levels after Friday's selling.
