Daily Market Report (13 June 2024)
  • It was another confusing day on Wall Street as both the Nasdaq and S&P 500 closed on record highs while the DJIA ended in negative territory.
  • Sentiment was buoyed but May’s lower than expected CPI data but at the same time dampened by the Federal Reserve’s indication of possibly only one cut in rates this year.
  • In tandem with the cooling inflation figure, the Fed kept interest rates unchanged as the US 10-year yield eased to 4.318%.
  • Over in Hong Kong, the HSI declined to below the 18,000 mark as selling gathered momentum following China’s latest inflation data that signals weak demand.
  • Meanwhile, the EU’s imposition of more tariffs on Chinese EVs next month to a tune of 48% would see negative implications for such carmakers on the mainland.
  • Back home, the FBM KLCI ended lower despite a strong opening amid a mixed regional performance.
  • Nonetheless, we believe buyers should emerge today after the broader market resurgence on Wall Street overnight thus expect the benchmark index to hover between the 1,610-1,625 range.
Daily Market Report (12 June 2024)
  • Wall Street closed on a mixed note as traders are waiting for the inflation data out later today coupled with the Federal Reserve outlook on interest rates.
  • As a result, the DJIA lost 121 points while the Nasdaq jumped by 151 points largely thanks to Apple that saw share price soar amid optimism of its new AI feature.
  • Meanwhile, the US 10-year yield eased slightly to 4.402%.
  • In Hong Kong, the HSI fell as traders turned cautious on rates in the US after a strong job data last week.
  • There was also a sell-down on EV manufacturers following statements from Türkiye of imposing tariffs on Chinese EVs.
  • Back home, the FBM KLCI failed to maintain its strong opening as late selling saw the index closing lower.
  • Nonetheless, we noticed some muted accumulation on stocks thus expect the index to hover between the 1,605-1,615 range today.
  • If you missed our Rakuinsights yesterday, there are trading opportunities on logistic related players namely KGW, FM Global, Tasco and Harbour Link following a surge in Global Freight rates which have more than doubled YTD.
Daily Market Report (11 June 2024)
  • Wall Street ended in positive territory with both the Nasdaq and S&P recording new highs ahead of the Federal Reserve’s stance on interest rates this Wednesday.
  • Consensus views that the Feds will keep rates steady following a strong job data last Friday.
  • As such, the DJIA gained 69 points where the Nasdaq added 59 points as the US 10-year yield edged higher at 4.471%.
  • The Hong Kong market was closed yesterday for Dragon Boat festival and will resume trading today.
  • On the home front, the FBM KLCI closed lower after struggling to maintain its uptrend amid a mixed regional performance.
  • Nonetheless, we noticed that daily volume remains decent at around the 6bn shares threshold and should improve over time when the buyers return to the smaller cap companies.
  • For today, we expect the index to hover between the 1,610-1,620 range and the emergence of bargain hunting activities in the event if the index test the 1,610 mark.
  • Meanwhile, the Brent crude price closed in of US$82/barrel on improving demand.
Daily Market Report (10 June 2024)
  • Wall Street closed lower as sentiment was affected by the better than expected US job data in May translating to more uncertainties on the Federal Reserve’s stance on intertest rates.
  • As a result, the DJIA lost 87 points while the Nasdaq declined by 40 points as the US 10-year yield climbed to 4.434%.
  • Over in Hong Kong, the HSI slid by 100 points following China’s slower import data underscoring the weak domestic demand.
  • This is despite exports rising by 7.6% in May from 1.5% in April.
  • Back home, the FBM KLCI maintained its upward momentum as bargain hunters returned.
  • Though the benchmark index failed to stay above the 1,620 level, we deem last week’s performance as decent.
  • Post-results for the 2Q24 period, we noticed that many research houses had upgraded their respective 2024 target for the index thus indicating that the market still has the legs to trend higher.
  • For today, we believe the index to hover between the 1,615-1,625 range.
  • Recent move by the European Central Bank to cut interest rate is also a positive indicator that global central banks are beginning to detach themselves from the Federal Reserve.
Daily Market Report (7 June 2024)
  • Wall Street pared gains and ended mixed as investors are cautious ahead of the US payrolls data.
  • As a result, the Dow finished 0.20% higher, ending above the 38,886.17 mark, while the tech-heavy Nasdaq saw heavy profit takings, losing 0.09%.
  • Stocks in Hong Kong finished higher, buoyed by positive economic recovery indicators from China.
  • The HSI climbed 0.3%, closing at 18,476.8.
  • As for the local bourse, the FBM KLCI ended on a positive note, driven by robust buying in the utilities sector.
  • Given the improving market sentiment and support from foreign buyers, nonetheless investors shall be wary of the increasing global volatility.
  • We forecast the FBM KLCI to move within the 1,615-1,630 range today.