Daily Market Report
- Wall Street close broadly lower triggered by another round of sell-down in semiconductor and AI related stocks, further exacerbated by the jump in crude oil price due to escalation in tension between the US and Iran. The Brent crude ended at around USD89/barrel level. Meanwhile, the US 10-year yield dropped slightly to 4.551%.
- The sell-down in technology related stocks had spread across the Asia region as both the South Korean and Taiwan markets declined by more than 6%. As a result, the HSI dipped to a 1-month low at below the 25,000 mark.
- Back home, the FBM KLCI was the contrarian performer to end higher, surpassing the 1,730 thresholds.
- Buying on the local bourse was broad based as we suspect foreign funds are rotating out from their tech related portfolio to more traditional sectors, namely Banking, Consumer and Plantation. For today, we expect the index to possibly trend within the 1,725-1,740 range.
