Daily Market Report (3 February 2023)
- Wall Street closed mixed amid easing inflationary concerns and a more resilient labour market ensuring a soft landing scenario for the US economy.
- Though the DJI Average lost 39 points, the Nasdaq however jumped by 384 points with the US 10-year yield eased marginally to 3.4%.
- Over in Hong Kong, the HSI slipped 114 points after a strong opening as profit taking activities emerged erasing earlier gains.
- Nonetheless market undertone remains strong taking cue from the Federal Reserves’ less aggressive rate hike.
- Back home, the FBM KLCI ended on a positive note but below the 1,490 level as trading on the blues remains subdued.
- As we enter into corporate results season, we reckon most of the Big Caps to show decent earnings growth for 2022 particularly the Banks, Energy and Consumer sectors.
- For today, we expect the index to possibly trend between the 1,490-1,500 range.
- Meanwhile, we notice that consensus had changed their stance on the domestic interest rate scenario as most anticipate BNM to maintain the OPR indefinitely which is good news to equities.