Daily Market Report (6 July 2023)
- Wall Street resumed trading on a weak note as minutes on June from the Feds indicated that there will be more rate hikes ahead.
- This is despite recent data showing a weaker than expected factory order in May.
- The DJI Average lost 130 points while the Nasdaq declined by 25 points as the US 10-year yield inched closer to the 4% level at 3.934%.
- Over in Hong Kong, the HSI tumbled 305 points following a downgrade on several major banks by Goldman Sachs.
- Sentiment deteriorated further as the ongoing US/China spat within the tech sector may hinder the development of the industry.
- Back home, the FBM KLCI closed lower as selling intensified towards the closing.
- It is interesting to note that the Plantation stocks are quietly sustaining the uptrend to a 1-month high reflecting the recent rebound in CPO prices currently above the RM3,900/tonne mark or a 3-month high.
- Although the date for the state polls set on August 12 may alleviate some degree of uncertainties to the market, we reckon sentiment will remain cautious thus expect the index to trend within the 1,385-1,405 range today.
