Daily Market Report (7 February 2024)
- Wall Street ended higher as traders are assessing the latest batch of corporate earnings and the Federal Reserve’s timeline of easing interest rates which will be later than the highly anticipated March.
- As a result, the DJI Average jumped by 141 points while the Nasdaq added 11 points with the US 10-year yield easing to 4.09%.
- Over in Hong Kong, the HSI rallied to close 627 points higher at above the 16,000 level amid interventions from China’s sovereign fund coupled with new curbs on short selling activities.
- At the home front, the FBM KLCI closed in positive territory following a rather volatile afternoon session illustrating a strong market undertone.
- Despite the persistent buying from foreign funds, we noticed that retail participation may have dried out as depicted by the lower daily volume of late.
- Nonetheless, we are confident that funds flowing into the blue chips will eventually spill over to the smaller caps plus the positive intervention from China in shoring up both the Chinese and Kong Kong markets.
- Thus, we expect the index to hover within the 1,510-1,520 range today.
