Daily Market Report (31 January 2024)
- Wall Street closed mixed on the back of a mixed bag of corporate earnings and strong labour market as traders wait for the outcome from the FOMC latest meeting.
- As such, while the DJI Average gained 134 points, the Nasdaq lost 118 points despite the US 10-year yield continuing to slide hovering at 4.036%.
- In Hong Kong, the HSI declined by 374 points to end below the 16,000 level impacted by Evergrande’s liquidation order coupled with concerns on corporate earnings outlook.
- Back home, the FBM KLCI ended lower after a solid opening attributed to some profit taking activities and impacts from the sharp drop in Hong Kong equities.
- Nonetheless, we reckon this is only an intermittent correction and will not distract recent inflows of foreign funds thus recent dips offer excellent opportunities to bargain hunt.
- For today, we believe the index to hover within the 1,510-1,520 range with interests on the Financials and Plantation counters to persist.
