Daily Market Report (6 March 2024)
- Wall Street slumped as sellers emerged following the recent record breaking sessions by the 3 major indices.
- Concerns that prevailing fundamentals may not be able to sustain the high valuations prompted some traders to lock in profits.
- As a result, the DJI Average lost 404 points while the Nasdaq declined by 268 points despite the US 10-year yield easing to 4.151%.
- Over in Hong Kong, the HSI weakness continues as it closed 433 points lower to hover just above the 16,000 threshold after China’s annual parliamentary meeting which unveiled only modest fiscal measures amid some ambitious growth targets.
- Back home, the FBM KLCI pared earlier losses to end slightly lower attributed to some late buying activities.
- Regional weaknesses coupled with the lack of fresh leads saw a weak morning session for the local bourse.
- Though we expect market undertone to stay cautious from the decline on Wall Street, a swift rebound is required for the FBM KLCI to maintain its recent progress.
- Therefore, we believe the index to hover within the 1,535-1,545 range today and recent positive newsflow within the Construction sector should bode well for the contractors.
