Daily Market Report (6 June 2023)
- Wall Street closed lower yesterday as investors digested weaker-than-expected economic data ahead of next week's Federal Reserve meeting.
- The DJIA closed almost 200 points lower while Nasdaq and S&P500 were also in negative territory.
- In Hong Kong, stocks extended gains yesterday amid expectations Beijing will roll out measures to support an economic recovery and concerns about higher US interest rates eased.
- Back home, the FBM KLCI closed negative territory last Friday despite the positive performance across the region.
- We expect sentiment to remain cautious following the negative performance on Wall Street overnight, nonetheless, we believe the selldown on local equities seems unjustified as performance in 1QCY23 quarterly earnings were largely within expectations while the outlook of local economy remains positive.
- We anticipate the FBM KLCI to trend within the range of 1,380-1,390 range for today.
- The recent sell-off on banking stocks offers more potential upsides for investors, hence, we expect banks should be ripe for some accumulation soon.
- Meanwhile the Brent Crude oil rebounded to US$76.60/barrel after Saudi Arabia on Sunday said it will slash its oil output by another 1m barrels per day starting in July.
