Daily Market Report (4 July 2024)
  • Wall Street closed on a mixed note as traders shrugged off the weak economic data and instead are betting on hopes that the Federal Reserve will look to cut interest rates as illustrated by the decline in US 10-year yield to 4.354%.
  • Despite the DJIA losing 24 points, Nasdaq gained 159 points to hit a fresh new high buoyed by interests in Nvidia and Tesla.
  • Over in Hong Kong, the HSI closed near the 18,000 mark by adding more than 200 points boosted by a tech-related rally especially from Alibaba.
  • Back home, the FBM KLCI surged to a 1-month high supported by stock accumulation across the board.
  • We believe the local bourse may have emerged from its consolidation phase hence expect the index to play catch-up and trend within the 1,615-1,630 range today.
  • Meanwhile, crude oil prices are firmer due mainly to lower inventory as the Brent inches towards the USD88/barrel level.
Daily Market Report (3 July 2024)
  • Wall Street closed higher as both the S&P 500 and Nasdaq touched another record high despite the Federal Reserve reiterating that it is not ready to cut rates as yet until inflation sustains its slide towards 2%.
  • As a result, the DJIA gained 162 points while the Nasdaq jumped by 149 points with the US 10-year yield easing slightly to 4.436%.
  • In Hong Kong, the HSI ended marginally higher as sentiment improved over the Chinese manufacturing data.
  • On the home front, the FBM KLCI pared earlier gains to close marginally lower attributed to late selling activities.
  • Nonetheless, we noticed the presence of buyers coupled with improving trading volume which breached the 5bn shares level.
  • For today, we expect the index to possibly trend within the 1,600-1,610 range as bargain hunting activities is anticipated to persist.
  • Meanwhile, crude palm oil (CPO) price improved to around the RM4,000/tonne may induce some interest on Plantation stocks.
Daily Market Report (2 July 2024)
  • Wall Street closed firmer in a shortened trading week despite traders are becoming concern over the lack of market breadth during the recent run-up.
  • Nonetheless, the DJIA rose 51 points while the Nasdaq jumped 147 points with the US 10-year yield edging higher to 4.47%.
  • Hong Kong market was closed yesterday.
  • Back home, the FBM KLCI closed higher as bargain hunting activities emerged after a 7-day decline.
  • However, we noticed daily volume traded has declined tremendously to below the 4bn units threshold hence expect this to improve soon to sustain the recent uptrend.
  • As such, we anticipate the index to trend between the 1,600-,1610 range today as valuation remains reasonable amongst the blue chips.
  • Meanwhile, crude oil prices were mostly higher with the Brent crude closing in to the US$87/barrel on heightening geopolitical tension and improving demand.
Daily Market Report (1 July 2024)
  • Wall Street closed lower as traders are digesting the latest economic data released last Friday, as May’s inflation is within consensus estimates but consumer sentiment is on the rise.
  • Nonetheless, the majority still feels that the Federal Reserve may adjust interest rates in September.
  • As such, the DJIA lost 45 points while the Nasdaq declined by 126 points as the US 10-year yield edged higher to 4.392%.
  • In Hong Kong, the HSI pared earlier gains to end the day flat as sentiment turned cautious on China’s growth trajectory.
  • On the home front, the FBM KLCI finally managed to close in positive territory at the 1,590 mark.
  • We believe the domestic market undertone to improve following a rather muted inflation data from the US thus expect the index to hover within the 1,590-1,600 range today.
  • Meanwhile, the weakening of the Japanese yen against the greenback to a 38-year low could prompt possible fresh realignments of portfolios out of the Japanese stockmarket and into other Asian markets.
Daily Market Report (28 June 2024)
  • Wall Street edged marginally higher as traders remain sidelined ahead of fresh inflation data to be out later today.
  • As a result, the DJIA closed 36 points higher while the Nasdaq added 53 points.
  • Meanwhile, the US 10-year yield dipped slightly to 4.286% on higher jobless claims indicating a softening US job market.
  • Over in Hong Kong, the HSI fell by more than 370 points over the weaker industrial profits from Chinese companies illustrating that China’s economic recovery momentum may be weakening.
  • Back home, the FBM KLCI ended lower as selling persisted amid a declining regional performance.
  • We believe trading pattern on the local bourse to be subdued today ahead of the release of the US personal consumption expenditure data later today.
  • Therefore, we expect the benchmark index to trend between the 1,580-1,590 range today.
  • At current levels, the local bourse is trading at a reasonable 15x market PER as compared to the historical 16.5x thus may instigate some bargain hunting activities in due course.