Daily Market Report (9 June 2023)
- Wall Street closed on a positive note as traders are betting that the Feds may pause their rate hike in June in view of inflation which has been inching down.
- As a result, the DJI Average ended 168 points higher while the Nasdaq added 134 points as the US 10-year yield closed lower at 3.718%.
- Over in Hong Kong, equities also ended positively following the deposit rate cuts by major banks sparking expectations that borrowing costs may be lowered as a measure to spur economic activities.
- Meanwhile on the home front, the FBM KLCI declined to just below the 1,375 level as market undertone remains weak.
- Foreign funds continued to unload their position pushing YTD total outflows above the RM4bn mark.
- Though bargain hunting activities are expected anytime soon, we reckon the lack of catalysts amid the prevailing political climate may see overall sentiment to be lacklustre.
- Therefore, we expect the index to maintain its consolidation and hover within the 1,375-1,385 range today but see interests returning to the Tech stocks taking cue from the Nasdaq which is now at its 52-week high.
