Daily Market Report (31 October 2023)
- Wall Street staged a strong rally as traders are betting that the Federal Reserves may be done with interest rate hikes for the rest of 2023 after hitting a “low” on Monday.
- Therefore, all eyes will be on the FOMC meeting today and tomorrow.
- Whether this is a relief rally remains to be seen as the DJI Average surged 511 points while the Nasdaq added 146 points with the US 10-year yield remaining elevated at 4.888%.
- In Hong Kong, the HSI barely stayed above water as sentiment was fragile due to weak earnings from major banks attributed to high impairment charges related to the weak Chinese property market.
- Back home, the FBM KLCI ended slightly lower to close below the 1,440 mark as investors continue to be sidelined amid weaknesses across the various sectors.
- Nonetheless, we reckon regional market may take cue from Wall Street today which will spillover to the local bourse.
- In view of this, we expect the index to hover within the 1,440-1,450 range and expect some bargain hunting activities for the Contractors and Telcos today.
