Daily Market Report (3 August 2021)
- US equities closed on a mixed note on fears of the new Covid variant coupled with concerns that the economic growth may have peaked.
- The DJI Average ended 97 points lower at around the 34,840 threshold or down by more than 300 points from its intra high.
- Funds may have reverted to the US Treasuries as the 10-year yield dipped below 1.18%.
- Domestically, the FBM KLCI ended rather flat amid some buying support from the local institutions.
- Beset by both political uncertainties and high Covid cases, we reckon the FBM KLCI to see continued weaknesses as selling from the foreign funds is expected to remain strong.
- In view of this, the index is expected to possibly break 1,490 today and test the 1,480 level unless bargain hunting activities from the local institutions emerges.
- For today, we reckon the index to trend around the 1,485-1,495 range.
