Market Reports

Daily Market Report (9 August 2024)
Daily Market Report (9 August 2024)
  • Wall Street rebounded sharply buoyed by the lower than expected weekly jobless claims, allaying fears of the creeping US unemployment rate and recessionary fears.
  • Attention may now be on the CPI data next Wednesday.
  • As such, the DJIA jumped 683 points while the Nasdaq added 464 points with the US 10-year yield ending higher at 3.989%.
  •  Over in Hong Kong, the HSI closed slightly higher after a slow opening on expectations that global funds may return to undervalued Chinese equities.
  • On the home front, the FBM KLCI closed on a flat note as the market is still trying to even after the recent wild gyrations.
  • Though daily volume traded has weakened to around the 4bn shares level, we see this as positive, noting that selling may be easing.
  • Despite the upturn on Wall Street, we expect sentiment on the local bourse to remain cautious ahead of the weekend, hence anticipate the index to hover within the 1,590-1,600 range today.
Download
Daily Market Report (8 August 2024)
Daily Market Report (8 August 2024)
  • Wall Street closed lower as early attempts to prop up the market failed.
  • This is further exacerbated by the weak demand for the latest US Treasury sales, underscoring the fragile confidence of the US economic conditions.
  • As such, the DJIA erased 234 points while the Nasdaq declined by 171 points as the US 10-year yield edged marginally higher at 3.952%.
  • In Hong Kong, the HSI recovered on the back of China’s stronger than expected import data.
  • Back home, we were surprised by the FBM KLCI strong recovery as the index may be looking to test breaking the 1,600 level.
  • Though the 1,600 is now deemed as a psychological resistance, we reckon it is crucial that this level is broken soonest possible in order to maintain the recent upward trajectory.
  • Nonetheless, as sentiment is still in a cautious mode, we expect the index to possibly hover within the 1,590-1,600 range today.
Download
Daily Market Report (7 August 2024)
Daily Market Report (7 August 2024)
  • Wall Street staged a relief rally as all 3 major indices closed on a positive note supported by broad based buying.
  • Nonetheless, many are aware that market volatility has heightened and do not discount the fact that selling activities may re-emerge.
  • As such, the DJIA gained 294 points while the Nasdaq added 167 points as the US 10-year yield edged higher at 3.90%.
  • Over in Hong Kong, the HSI pared earlier gains to end slightly lower despite the rally in Japan.
  • Confidence remains fragile on concerns over China’s growth and the lack of easing catalysts.
  • Back home, the FBM KLCI rebounded in line with the improved regional performances.
  • However, whether this is sustainable remains to be seen as sentiment has turned jittery.
  • Therefore, we need to see persistent buying support on the local bourse over the next few days before market undertone improves.
  • For today, we believe trading to remain cautious thus expect the index to hover within the 1,570-1,580 range.
  • Finally, we are also keeping an eye in the middle east as prevailing simmering tension may boil into a full wage war.
Download
Daily Market Report (6 August 2024)
Daily Market Report (6 August 2024)
  • Wall Street’s slump continues as selling became more unrelenting with traders opting for “sell first, think later” concept amid recessionary fears in the US.
  • As such, the DJIA lost a massive 1,034 points while the Nasdaq declined by 576 points with the US 10-year yield dropping to 3.778% or at a 52-week low.
  • Notwithstanding this, the only positive we saw is that all 3 major indices closed off their intra-day lows.
  • In Hong Kong, the HSI ended 250 points lower against a regional bloodbath backdrop especially in Japan that dived 12%.
  • On the home front, the FBMKLCI declined to a 4-month low to below the 1,540 mark amid a regional bloodbath predominantly due to unloading of Yen carry trades.
  • Nonetheless, we remain adamant that the selling was overdone as our market valuation is nowhere near those on Wall Street.
  • Over the past two days, our market PER dipped from 15.4x to 14.6x currently, thus presenting an excellent opportunity for some value accumulation.
  • For today, we believe selling may be less dramatic as Wall Street futures are all showing a rebound at time of writing hence expect the index to hover within the 1,500-1,550 range today.
Download
Daily Market Report (5 August 2024)
Daily Market Report (5 August 2024)
  • Wall Street sell-down continues as sentiment was further eroded amid recessionary fears and the weaker than expected job data for July pushing unemployment rate higher to 4.3%.
  • As a result, the DJIA declined by 611 points while the Nasdaq lost 418 points as funds maintained the transition to bonds thus pushing the US 10-year yield to a YTD low at 3.799%.
  • In Hong Kong, the HSI declined to below the 17,000 level following the possible rough landing of the US economy despite of more potential rate cuts from the Federal Reserve going forward.
  • Back home, the FBMKLCI was not spared either as it dipped to just above the 1,610 mark amid a regional bloodbath.
  • We believe such drastic selling was just a knee-jerk reaction as traders may treat this as an excuse to lock in profits.
  • Nonetheless, we reckon overall sentiment may have turned cautious though we anticipate some bargain hunting to resurface albeit tentatively.
  • As such, we see the index to possibly hover within the 1,605-1615 range today.
  • Meanwhile, the good news is that the MYR has strengthened to RM4.50/USD1 or our year-end target.
Download