Daily Market Report (28 February 2023)
- Wall Street staged a relief rebound following a dreadful performance of US equities last week amid a marginal decline in the US 10-year yield that closed at 3.92%.
- As such, the DJI Average added 72 points while the Nasdaq was also up by 72 points after a choppy session.
- Over in Hong Kong, the HSI lost 66 points to below the 20,000 mark or a YTD low as foreign funds continued with their sell-down. Sentiment has turned hesitant as about China’s economic recovery as investors are now looking at the “two sessions” meeting in Beijing, China from March 4 on hopes of more policy stimulus.
- Back home, the FBM KLCI pared earlier losses to close on a flat note thanks largely to some late buying on banking stocks.
- For today, we believe some bargain hunting activities to emerge soon as the benchmark index had fallen by 2.7% YTD depicting that local equities are trading at very reasonable valuations.
- We reckon the Banks, Plantation and Telcos stocks are ripe for accumulation. Reflecting the reverse in sentiment, the Ringgit had also weakened against the greenback currently at RM4.45/USD1.
