Daily Market Report (6 September 2023)
- Wall Street closed on a weak note as rising crude oil prices reignited inflationary concerns as both Saudi Arabia and Russia extended their voluntary cut in supply pushing the Brent crude to a year to date high at above the US$90/barrel.
- As a result, the DJI Average lost 196 points while the Nasdaq declined by 11 points as the US 10-year yield inched higher to 4.266%.
- In Hong Kong, the HSI slumped 390 points as confidence continues to be spooked by potential more Country Garden’s default despite having averted a portion of it earlier.
- Sentiment remains jittery as the Chinese property developer is faced with more debt maturities and traders are concerned that the stimulus package from Beijing may be insufficient to revive the sector.
- On the home front, the FBM KLCI was also affected by the regional weaknesses affected by the property scene in China.
- In view of the change in sentiment to cautious mode, we reckon the index to trend within the 1,450-1,460 range today as some bargain hunting activities may emerge.
- On a more positive note, we noticed volume traded on the local bourse remained elevated at above 4bn shares.
