Daily Market Report - 5 November 2025
- Wall Street fell on concerns over the burgeoning AI related valuation bubble.
- Traders are beginning to realise that valuations for AI related stocks are seriously stretched, hence expecting a pullback.
- Meanwhile, the US 10-year yield eased marginally to 4.083%.
- As for Hong Kong, the HSI dipped to just below the 26,000 level as traders turned cautious over the elevated valuations of AI related stocks amid a deescalation of trade tension between China and the US.
- Back home, the FBM KLCI ended flat despite a solid morning session as overall sentiment became nervy amid a weak regional performance.
- Trading remains lacklustre as illustrated by the daily volume which is still stuck within the 3.0-3.5bn shares.
- For today, we expect the index to hover within the 1,620-1,630 range.
