Daily Market Report (6 May 2024)
  • Wall Street surged as a lower than expected job data reinforces traders’ belief that this may in turn see softer inflationary pressure hence the Federal Reserve rate adjustments finally.
  • As a result, the DJI Average gained 450 points while the Nasdaq jumped by 315 points with the US 10-yeat yield eased further to 4.497%.
  • Over in Hong Kong, the HSI closed on another YTD high buoyed by more commitments from China with positive measures to prop up economic growth.
  • On the home front, the FBM KLCI’s uptrend has been relentless since mid-April as accumulation on blues chips continues by both local institutions and foreign funds.
  • The benchmark index currently hovering at a 52-week high is anticipated to trend higher underpin by reasonable valuations.
  • We believe a decisive break-out from the 1,600 level is required as this has been a tough resistance to topple.
  • For today, we believe the index to trend between the 1,590-1,600 range.
  • Interestingly, the influx of major tech company’s big wigs into Malaysia recently may be a prelude for exciting times to come.
  • Thus, in view of the cumulative FDIs, we reckon the Banks and Construction stocks to be in focus today.
Daily Market Report (3 May 2024)
  • Wall Street closed higher as US Fed Chair Jerome Powell played down the likelihood of an interest-rate hike, bringing relief to investors.
  • Furthermore, the US central bank revealed its strategy to slow down the pace of its balance sheet drawdown starting on June 1, aiming to prevent any excessive strain on financial markets.
  • As a result, the Dow finished 0.85% higher, ending above the 38,800 mark, while the tech-heavy Nasdaq jumped 1.51%, closing in on the strong resistance level of 16,000.
  • In Asia, key indices finished mixed due to profit-taking in some bourses, while in Hong Kong, stocks finished sharply higher with strong buying in EV and real estate sectors.
  • Consequently, the Hang Seng Index jumped 2.5% to finish at 18,000 points.
  • On the domestic front, the FBM KLCI closed higher as investors seized the opportunity to bottom fish following the sell-off on Tuesday.
  • We believe the outlook for local equities remains positive, thanks to the continuous inflow of foreign funds into the region.
  • Hence, we anticipate the FBM KLCI to trend within the range of 1,580-1,590 for today.
Daily Market Report (2 May 2024)
  • Wall Street closed with mixed results following the Federal Reserve's decision to maintain its key interest rate, as anticipated.
  • The Fed suggested that while a rate cut might be the next step, sustained progress on inflation remains uncertain.
  • The Dow rose 87 points (0.20%) to end just below the 38,000 mark.
  • However, stocks associated with artificial intelligence faced difficulties, as some of the top AI companies reported disappointing earnings, sending the Nasdaq 52 points lower to settle at 15,605.
  • Meanwhile, trading was muted in the region as several bourses were closed for a public holiday.
  • On the domestic front, the FBM KLCI closed lower after on Tuesday due to profit taking activities.
  • While there was a pullback subsequent to the rally, we perceived this correction as a healthy consolidation essential for sustaining the upward trend.
  • As such we anticipate the FBM KLCI to trend within the range of 1,570-1,580 for today.
Daily Market Report (30 April 2024)
  • Wall Street continued with its uptrend boosted by solid corporate earnings report, but Tesla was the day’s hero after it cleared the first hurdle for full self-driving technologies in China.
  • Nonetheless, rotational plays amongst the mega tech stocks were evident with McDonald’s, Coke and Amazon earnings still to come.
  • As such, the DJI Average gained 146 points while the Nasdaq added 55 points with the US 10-year yield easing further to 4.612%.
  • In Hong Kong, the HSI added another 96 points or improved by almost 19% from its YTD low in mid-January.
  • The revitalisation of the Hong Kong market can largely thanks to China’s new measures to boost sentiment plus the improving corporate earnings.
  • Back home, the FBM KLCI ended at another YTD high underpinned from broad-based buying on blue chips and surprisingly Banks were not the preferred ones.
  • Nonetheless, we believe this offers good opportunities to buy some banking stocks as interest will eventually return to the sector.
  • For today, we expect the index to hover between the 1,580-1,590 range and we will be closed for Labour Day tomorrow.
Daily Market Report (29 April 2024)
  • Wall Street ended the week on a strong note buoyed by robust earnings from both Alphabet and Microsoft while dispelling initial concerns over slower US economic growth and sticky inflation.
  • As such, the DJI Average gained 154 points while the Nasdaq rallied 316 points as the US 10-year yield eased slightly to 4.663%.
  • Over in Hong Kong, the HSI jumped 366 points as confidence seems to be back underpinned by policies to boost the market coupled with positive corporate earnings.
  • On the home front, the FBM KLCI closed on a YTD high as bargain hunters returned to the local bourse.
  • For today, we expect the index to maintain its upward trajectory hence anticipate the index to hover between the 1,575-1,585 range with buying interests possibly focused on the Banks.
  • Meanwhile, crude oil prices are expected to trend higher in view of the escalating tension in the Middle East and lower inventory that saw the Brent crude to close at US$89.50/barrel.