Daily Market Report (5 July 2023)
- Wall Street was closed for Independence Day yesterday and a look at the futures showed that all 3 major indices are now hovering marginally lower.
- Meanwhile, the chip tension between China and the US took a twist as China imposed export restrictions of gallium and germanium, 2 raw metals vital in semicon production.
- In Hong Kong, the HSI added 109 points to almost a 2-week high buoyed by the share price surge in BYD, the world’s largest EV maker.
- However, the tech sector was affected by the latest export ban.
- On the local front, the FBM KLCI closed off the day low due to some late bargain hunting activities amid a mixed regional trend.
- For today, though we believe BNM will maintain the OPR during the MPC meeting today, we reckon market sentiment will stay cautious waiting for the outcome.
- Thus, we expect the index to hover within the 1,390-1,400 range today with interests possibly on the Financial and Telco sectors.
- Meanwhile, the Brent crude price ended at above the USD76/barrel in response to production and exports cut by Saudi Arabia and Russia respectively.
