Daily Market Report (30 June 2023)
- Wall Street closed higher as major banks passing their US Fed annual stress test.
- Following this, banking and financial stocks rallied causing the DJIA and S&P500 to jump almost 270 points and 20 points respectively.
- Despite concerns of an impending recession, a range of encouraging economic indicators pointed towards resilience in the economy.
- Particularly, there was a significant upward revision in the first-quarter GDP, accompanied by a decline in weekly jobless claims, reaching their lowest level since May.
- Meanwhile in Hong Kong, the HSI closed lower due to profit takings after the recent rally.
- Back home, the FBM KLCI ended higher on Wednesday following the strong regional rally.
- As for today, we expect trading to be muted due to long weekend in conjunction of the Hari Raya Haji holidays.
- Nonetheless, we expect buying interests to return to banking stocks reflecting the strong performance of banks in Wall Street.
- As such, we anticipate the FBM KLCI to trend within the range of 1,385-1,395.
