Daily Market Report (18 September 2023)
  • Wall Street retreated as traders are looking ahead for the Feds move on interest rates this Wednesday following a mixed batch of economic data.
  • Though it is widely expected that the Feds will maintain the rates for now, recent headline inflationary figures still showed a slight expansion.
  • As such, the DJI Average lost 289 points while the Nasdaq declined by 218 points as the US 10-year yield inched higher to 4.336%.
  • Meanwhile in Hong Kong, the HSI added 135 points after China’s move to cut the Statutory Reserve Requirement (SRR) last Friday to inject more liquidity into the financial system.
  • China’s August retail sales and factory output that exceeded expectation further boosted sentiment.
  • At the local front, the FBM KLCI finally tested the 1,460 mark or a 6-month high attributed to persistent accumulation by foreign funds.
  • We believe this level should be breached anytime soon as valuation of the local blue chips remains low.
  • Despite the headwinds from Wall Street, we expect the index to continue with its upward trajectory and expect it to hover between the 1,460-1,470 range today.
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Daily Market Report (15 September 2023)
  • Wall Street closed higher thanks largely to the successful listing of ARM despite both the headline CPI and PPI for August coming in slightly higher than expected.
  • Nonetheless, consensus is of the view that the Feds will not hike interest rates this month.
  • As such, the DJI Average rose 331 points while the Nasdaq increased by 112 points as the US 10-year yield edged higher to 4.286%.
  • As for Hong Kong, the HSI halted its 6-day decline on improving rate outlook in the US.
  • China’s latest cut in its RRR by 25bps injecting around US$69bn to aid its recovery should boost sentiment for now.
  • Meanwhile, EU’s probe on China’s EV subsidies may ignite some discontentment.
  • On the domestic front, the FBM KLCI declined slightly to below the 1,450 level due mainly to Maybank’s ex-dividend price adjustments.
  • As market undertone for the local bourse remains solid firmly supported by stock accumulation, we anticipate the index to hover between the 1,450-1,460 range today.
  • Focus may return to Oil & Gas stocks as the Brent crude had surged past US$93/barrel in view of supply shortfall.
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Daily Market Report (14 September 2023)
  • Wall Street closed on a mixed note as the US inflation reading came in higher than expected for the month of August.
  • As a result, the DJI Average lost 70 points while the Nasdaq added almost 40 points thanks largely to gains from Tesla and Amazon.
  • Meanwhile, the US 10-year yield eased to 4.254%.
  • As for the Hong Kong market, the HSI completed its 6th day of losses on concerns over China’s economic recovery despite developer Country Garden obtained temporary reprieve from its creditors to delay bond payments.
  • Back home, the FBM KLCI closed flat following some late buying activities.
  • Though the local bourse seems to be well supported currently, underlying sentiment is still cautious as daily volume traded is still lower than desired.
  • Nonetheless, we reckon persistent accumulation on the blue chips will eventually see spillover effects on the smaller cap stocks.
  • For today, we reckon the index to hover between the 1,450-1,460 range again.
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Daily Market Report (13 September 2023)
  • Wall Street closed lower as traders wait for the CPI data today.
  • Though the DJI Average slid by a marginal 18 points, the Nasdaq saw a sharper 144 points decline predominantly dragged by weak results from Oracle which spread to other tech companies.
  • Meanwhile, the US 10-year yield eased slightly to 4.28%.
  • Over in Hong Kong, the HSI maintained its losing streak as sentiment remains affected by the weak Chinese housing market.
  • As for the local bourse, the FBM KLCI ended mildly lower but off the day’s low amid the presence of stock accumulation during the afternoon session.
  • Interestingly, there was buying on Plantations stocks despite the weakening CPO price to below RM3,700/tonne due to high stockpile.
  • Anyhow, despite prevailing external volatility, we reckon market undertone is still firm hence expect the index to hover within the 1,450-1,460 range today.
  • Interests may shift to the Oil & Gas counters today buoyed by the spike in crude oil prices as the Brent crude had trended past US$92/barrel attributed to tight supply.
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Daily Market Report (12 September 2023)
  • Wall Street closed higher as traders are betting that there may a shift in policy and that the Federal Reserves will pause with rate hike next week as we wait for the CPI and PPI figures which will to be out tomorrow and Thursday.
  • As a result, the DJI Average gained 87 points while the Nasdaq added 156 points as the US 10-year yield edged higher to 4.294%.
  • In Hong Kong, the HSI dipped to almost the 18,000 mark mainly attributed to the sharp decline in Alibaba following the resignation of its CEO Daniel Zhang from all positions in the e-commerce group.
  • Back home, last minute buying helped push the FBM KLCI to close flat after a lacklustre day as sentiment remained cautious.
  • For today, we reckon trading on the local bourse to stay muted and expect the index to hover between the 1,450-1,460 range.
  • Meanwhile, higher predicted stockpile for palm oil saw the CPO prices weaken to a month low at around the RM3,700/tonne.
  • On a positive note, the construction sector may see some action as news that the RM43bn Melaka Gateway will be revived following the approval of guidelines and regulations by both the federal and State government.
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