Daily Market Report (3 October 2023)
- Despite avoiding a shutdown via a short-term agreement, Wall Street closed mixed as sentiment remains jittery against a high US 10-year yield backdrop.
- As a result, though the DJI Average declined by 74 points the Nasdaq added 88 points as the 10-year yield surged to 4.685%, the highest since 2007.
- The stockmarket in Hong Kong was closed yesterday for National Day celebration.
- On the home front, the FBM KLCI declined to end below the 1,420 level as market undertone remains cautious amid a mixed regional performance.
- Though this is deemed healthy as the local bourse digested the uptrend since July, we reckon a swift rebound is necessary to evade a prolong consolidation phase.
- Therefore, we anticipate some bargain hunting to emerge, especially for the utilities sector as yesterday’s selling may be a tad overdone.
- For today, we expect the index to hover between the 1,420-1430 range.
- Meanwhile, higher crude oil output in September saw easing crude prices with the Brent dipped to the US$90/barrel.
