Daily Market Report (31 Oct 2019)
- The Federal Reserves has cut interest rate by another 25bps which is the 3rd in 2019. Though the equity market has had reacted positively on the move, we reckon funds will eventually return to bonds thus impede the uptrend of the equity markets.
- Over in Asia, one can also expect interest rate sensitive countries namely Thailand and Indonesia to follow suit in due course.
- Meanwhile, the local bourse seems to have found a strong support at the 1,570 level and we expect the FBM KLCI continue with its upward momentum to re-test the 1,600 mark over the immediate term.
- Foreign funds outflow has had also taken a pause for the time being hence could be a positive sign especially for the blue chips. Maybe it is time to look at the banking stocks again.
