Daily Market Report (9 February 2023)
- Wall Street tumbled after a choppy session as traders digested remarks from the Federal Reserves that interest rates may need to stay high to fight inflation.
- As a result, the DJI Average lost 208 points while the Nasdaq declined by203 points as the US 10-year yield eased to 3.61%.
- Over in Hong Kong, the HSI closed 15 points lower amid some mild profit taking activities but tech related stocks experienced some strong selling on concerns of earnings and interest rate outlook.
- On the home front, the FBM KLCI failed to maintain its strong opening as it dipped to the 1,470 level amid the continued sell-down on the Banks amid reports of potential hike in the SRR (statutory reserve requirement).
- Despite the prevailing weak market sentiment, we reckon blue chips are ripe for accumulation as we enter into the corporate earnings season where consensus remain confident that both the Banking and Telco sectors to perform strongly for 2022.
- For today, we expect the index to hover within the 1,470-1,480 range.
- Meanwhile, crude oil prices continued with its uptrend momentum as the Brent crude ended at above the US$85/barrel.
