Daily Market Report (4 August 2023)
- Wall Street closed marginally lower as traders are pondering on the surge in Treasury yields coupled with the job data to be out later today.
- The recent knee jerk reaction from Fitch’s downgrade seems to have abated as the DJI Average lost 67 points while the Nasdaq declined by 14 points as the US 10-year yield jumped to a YTD high at 4.178%.
- In Hong Kong, the HSI slipped to below the 20,000 mark again following a downgrade by Morgan Stanley on Chinese companies.
- Back home, the FBM KLCI ended slightly lower despite some last minute bargain hunting activities to push the index off the day’s low.
- Regional performance had been lacklustre as sentiment was affected by the Fitch downgrade instigating some knee jerk reactions.
- Thus, we believe buying activities may return today as foreign fund flows should continue into this region.
- Therefore, we expect the index to hover within the 1,435-1,445 range today with Banks to be back on the radar.
