Daily Market Report (6 January 2023)
- Wall Street slumped as the US job data came in better-than-expected prompting concerns that the Federal Reserves will continue to hike rates to combat inflation.
- The DJIA lost 340 points while the Nasdaq declined by 153 points as the US 10-year yield climbed above the 3.72% level.
- In Hong Kong, the HSI added another 259 points to above 21,000 maintaining its impressive performance so far for 2023.
- Supportive policies from China continued to spur buying interests on major tech companies namely Alibaba.
- As for the local bourse, the FBM KLCI finally rebounded following days of decline as bargain hunting activities emerged particularly on the Banks and Plantation stocks.
- For today, we reckon sentiment may turn cautious again due to the lack of strong catalysts thus anticipate the index to hover within the 1,475-1,485 range.
- Nonetheless, we believe the potential influx of Chinese tourists come 8th January will certainly be positive for the domestic tourism sector plus the domestic retail segment.
