Daily Market Report (6 March 2023)
- Wall Street closed broadly higher as traders are hoping that recent cumulative rate hikes by the Federal Reserves will be sufficient to tame inflation as the US 10-year yield eased to 3.96%.
- Therefore, while the DJI Average added 387 points, the Nasdaq gained 226 points.
- Over in Hong Kong, the HSI rebounded by 138 points as investors are hoping that improved economic activities in China will underpin corporate earnings growth.
- Meanwhile according to UBS, Chinese household savings due to the 3-year lockdown may probably generate as much as RMB600bn (USD87bn) of inflows into stocks that should add further impetus to equities.
- On the home front, the FBM KLCI ended almost 2 points lower despite broad-based accumulation on blue chips last Friday.
- Market undertone remained cautious as investors are eyeing at Bank Negara Malaysia’s MPC meeting on Wednesday and Thursday if the OPR will be adjusted.
- Our stance is that BNM will maintain the OPR at current level for now.
- Nonetheless, we reckon the index to trend between 1,450-1,460 range today with interests possibly centre on Energy stocks following a strong closing of crude oil prices that saw the Brent crude at almost USD86/barrel buoyed by China’s higher economic activities.
