
Daily Market Report - 31 Jan 2025
- Wall Street closed positively amid a volatile session following a mixed bag of corporate earnings from big tech companies.
- Sentiment has turned cautious after the Feds maintained interest rates, citing inflation remains somewhat elevated.
- Meanwhile, the US 10-year yield eased to 4.52%.
- Over in Hong Kong, the HSI inched marginally higher to stay above the 20,000 mark before closing for CNY celebrations.
- Many are expecting funds to re-look at Asian tech companies rendering better valuations with immense cost efficiency.
- The HKSE will resume trading on 3rd Feb.
- On the home front, the FBM KLCI continued with its downtrend or a YTD low, ahead of the CNY break as investors are concerned of the disruptions from Deepseek on the hyper-scalers’ AI investments going forward.
- Nonetheless, we are adamant that foreign funds will eventually look at Asia being a preferred destination due to reasonable valuations as compared to those overvalued ones on Wall Street.
- Thus, we can expect a U-turn in foreign funds back to the region. For today, we anticipate the index to hover within the 1,550-1,560 range.