Daily Market Report (13 May 2024)
  • Wall Street closed on a mixed note as investors remained torn between weakening economic data and inflationary pressure.
  • Nonetheless, sentiment was buoyed by the Federal Reserve stance that there will be no rate hike for now.
  • Nonetheless, all eyes will be on April CPI to be out May 15.
  • As a result, the DJI Average rose 125 points while the Nasdaq lost 5 points as the US 10-year yield edged higher at 4.50%.
  • In Hong Kong, the HSI surged to almost the 19,000 mark or a YTD high aided by renew optimism of the recovering Chinese economy and that Xian became the 2nd city to scrap property purchase restrictions after Hangzhou.
  • Sentiment was further boosted from talks that dividend tax may be scrapped on Hong Kong listed shares.
  • Back home, the FBM KLCI remains in consolidation mode as the index ended flat at just above the 1,600 level.
  • We believe buyers should return after recent bouts of correction thus expect the index to hover between the 1,600-1,610 with a strong upside bias today.
Daily Market Report (10 May 2024)
  • Wall Street closed higher amid a weaker job environment that saw the latest jobless claims at its highest level since August last year rekindling hopes that the Federal Reserve may lower interest rates soon.
  • As such, the DJI Average jumped 331 points while the Nasdaq added 43 points as the US 10-year yield eased marginally to 4.459%.
  • Over in Hong Kong, the HSI also displayed a decent performance buoyed by solid China’s trade data and the lifting of home buying restrictions in Hangzhou raising hopes that others will follow suit.
  • Back home, the FBM KLCI ended in negative territory after a strong opening yesterday as sellers maintained their dominance after the recent rally.
  • Nonetheless, we deemed this as a healthy correction and expect the index to reverse its direction anytime soon.
  • Therefore, we believe the benchmark index to trend between the 1,600-1,610 today with interests returning to the Construction and Telco segments.
  • Meanwhile, we are Neutral on BNM’s widely expected move to maintain the OPR at 3% yesterday.
Daily Market Report (9 May 2024)
  • Wall Street ended on a mixed note as traders are now converted into value seekers instead of hype investing.
  • Although AI remains the main investing theme, steep valuations may deter interests.
  • Thus, though the DJI Average added 182 points, the Nasdaq slid by 30 points as the US 10-year yield inched slightly higher at 4.50%.
  • In Hong Kong, the HSI declined as consolidation persists following the recent rally and ahead of China’s trade data where many are expecting a recovery.
  • Back home, the FBM KLCI closed flat despite encountering some selling pressure in the afternoon session.
  • Nonetheless, we view that yesterday’s intermittent correction as healthy and may act as a solid foundation for the local bourse’s ongoing uptrend.
  • For today, we expect the index to hover between the 1,600-1,615 as we believe foreign funds will continue to snap up local heavyweights, namely the Banks and Telcos which are still trading at attractive valuations.
Daily Market Report (8 May 2024)
  • Wall Street barely maintained its ongoing uptrend as traders are still waiting for more clues as to when the Federal Reserve will adjust interest rates.
  • Meanwhile, some funds are already cashing out looking at cheaper alternatives, namely Asia.
  • As such, the DJI Average gained 32 points while the Nasdaq lost 17 points from late selling as the US 10-year yield eased further to 4.461%.
  • In Hong Kong, despite a strong tourism data during the Labour Day break, profit taking activities saw the HSI closing almost 100 points lower following a decent run-up recently.
  • Back home, the FBM KLCI finally broke the 1,600-barrier underpinned by continuous accumulation in the blue chips by foreign funds.
  • Though we would prefer the ascension to persist, an intermittent correction may occur allowing the market to digest recent solid performance which is deem healthy.
  • Therefore, we believe the index to hover between the 1,600-1,615 range today with the 1,600 as the immediate psychological support.
Daily Market Report (7 May 2024)
  • Wall Street maintained its uptrend on hopes that the Federal Reserve will cut rates sooner rather than later.
  • Sentiment was further boosted by Hamas’ acceptance an Egyptian-Qatari cease fire proposal against Israel.
  • As such, the DJI Average gained 177 points while the Nasdaq jumped by 193 points with the US 10-year yield easing further to 4.487%.
  • Over in Hong Kong, the HSI almost tested the 19,000 mark as sentiment was buoyed by strong Chinese travel data coupled with upgrades by Goldman Sachs, UBS and BNP Paribas.
  • Back home, the FBM KLCI closed within touching distance of 1,600 mark and almost a 52-week high as buying in blue chips continues.
  • The benchmark index has had an impressive performance since mid-April, adding 4% as foreign funds returned.
  • Judging the prevailing uptrend, our 2024 target of 1,660 could be easily achievable as the local bourse remains reasonably priced currently at 15x CY24 PE vis-a vis the 16x average.
  • In view of this, we believe funds into the Blue Chips will eventually cascade down to the smaller caps thus expect Round 2 from small cap companies to excel.