Daily Market Report (28 Feb 2020)
- We are certainly into a correctional phase with the bottom remains unknown. Yesterday’s drastic decline on Wall Street has definitely changed the landscape from cautiously positive to now negative.
- Unless there is a sharp immediate uptick, we reckon the selling to persist for equity markets. Already the US 10-year yield has hit an all-time low with investors scurrying for safer havens.
- However, we may see some inflows of foreign funds into regional treasuries thus expect the MYR to strengthen against the greenback.
- Meanwhile, we believe the FBM KLCI to break the 1,500 mark today with 1,470 as the immediate support. We would advocate investors to hold cash with the possibility to bargain hunt eventually.
