Daily Market Report (5 Nov 2024)
  • Wall Street closed lower amid a choppy session as sentiment remains jittery ahead of the US presidential election today.
  • Meanwhile, traders were also focused on the Federal Reserve’s purported rate cut on Thursday. As such, the US 10-year yield retreated to 4.287% after days of uptrend.
  • Over in Hong Kong, the HSI managed to close positively largely buoyed by interests on EV stocks which recorded robust sales while waiting for more easing measures.
  • On the home front, bargain hunting activities propped the FBM KLCI to above the 1,615 level predominantly led by renewed interests in Plantation stocks.
  • As we had highlighted over the past 2 weeks, the strong CPO price will eventually place the planters back into the radar.
  • We believe there are still legs for these stocks as the CPO futures are racing towards the RM5,000/tonne level.
  • As we enter into the earnings season, we reckon sentiment should improve underpinned by the solid 15.4% earnings growth forecast for CY24 thus expect the index to chart within the 1,610-1,620 range today.
Daily Market Report (4 Nov 2024)
  • Wall Street closed firmer as traders ignored October’s weak job data citing possible impacts from the recent hurricanes and strikes.
  • Meanwhile, Nvidia has replaced Intel as the DJIA constituent commencing next week and the US 10-year yield flew past 4.3% to end at 4.386% illustrating the uneasiness over the Federal Reserve forthcoming rate adjustment.
  • In Hong Kong, the HSI rebounded spurred by growth in China’s property market for the first time this year after recent easing measures.
  • Back home, the FBM KLCI managed to stay above the 1,600 threshold after a brief fling below the psychological support level as bargain hunters emerged.
  • Nonetheless, overall sentiment remains cautious.
  • As we enter into a highly volatile week, we expect the index to trend within the 1,595-1,605 range today.
  • Finally, the CPO price managed to churn out its highest monthly average price at RM4,380/tonne for 2024.
Daily Market Report (1 Nov 2024)
  • Wall Street retreated as earnings from mega tech companies disappointed.
  • Meanwhile, the latest personal consumption expenditures price index came in within expectations, but impact was muted with the US 10-year yield inching higher at 4.282%.
  • In Hong Kong, the HSI closed marginally lower as traders are expecting more stimulus measures despite China’s economy showing signs of improving as China’s October purchasing manager index (PMI) came in higher than expected.
  • On the home front, the FBM KLCI declined sharply to almost the 1,600 level as selling from foreign funds persists.
  • We are curious by the sell-down from foreign funds recently but expect bargain hunters to emerge if the index dips below 1,600 thus envisage the index to hover within the 1,600-1,610 range today.
  • Meanwhile, the CPO price charted another YTD high surpassing the RM4,700/tonne but remains under the radar underscoring its role as the underdog.
Daily Market Report (30 Oct 2024)
  • Wall Street ended mixed amid a choppy session as traders are waiting for Alphabets’ earnings that is due later today.
  • Meanwhile, the US 10-year yield declined to 4.256%. Over in Hong Kong, the HSI maintained its upward trajectory but closed off its day’s high.
  • Sentiment was buoyed by robust earnings from HSBC and biopharmaceutical company Wuxi AppTec that beat expectations.
  • Back home, after a 4-day decline, the FBM KLCI finally ended on a positive note attributed to some bargain hunting activities.
  • Nonetheless, overall sentiment remains cautious as depicted by the low volume traded.
  • Meanwhile, it is worthwhile noting that the CPO price has trended at its YTD high thus giving hopes of a potential blockbuster 4Q for the planters.
  • All said, we are hopeful the index to maintain its rebound thus expect it to hover within the 1,615-1,625 range today.
Daily Market Report (29 Oct 2024)
  • Wall Street closed firmer ahead of a spate of earnings results and economic data in the coming days.
  • The decline in crude oil prices further eased concerns as Israel latest attacks did not target Iran’s oil facilities.
  • Meanwhile, the US 10-year yield edged higher at 4.282%. In Hong Kong, the HSI closed positively paring earlier losses as expectations of more stimulus measures may be in the offing following the declining earnings amongst industrial companies.
  • On the home front, the FBM KLCI continued to slide as it dipped to just above the 1,610 level despite a promising opening attributed to late profit taking activities by foreign funds again.
  • We suspect recent outflows of foreign funds can be due to expectations of a smaller rate cut by the Federal Reserve, which also saw the MYR weakening against the greenback to currently RM4.36.
  • All said, the crude palm oil (CPO) price is heading for a highest monthly average closing for October at RM4,391/tonne thus may see some focus on the Plantation stocks.
  • For today, we expect the index to hover within the 1,610-1,620 range.