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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Daily Market Report (11 September 2023)
  • Wall Street closed marginally higher despite expectations of more rate hikes by the Federal Reserves later this month.
  • Nonetheless, recent curbs by China to use iPhone by government employees should create more ripple effects within the tech sector.
  • While the DJI Average added 76 points, the Nasdaq gained almost 13 points as the US 10-year yield inched slightly higher at 4.26%.
  • Hong Kong market was closed due to severe storm warning last Friday.
  • On the home front, the FBM KLCI failed to maintain its uptrend amid a weakened regional performance.
  • We are particularly concerned about the sharp decline in volume last Friday and hope that it will improve in due course.
  • The recently concluded Pulai by-election should inject additional political stability for the country thus expecting more funds to flow into the equity market.
  • As such, despite sentiment remains in cautious mode we expect the index to hover within the 1,450-1,460 range today with interest on the Oil & Gas counter buoyed by the spike in crude oil prices that saw Brent crude closing in on US$91/barrel.
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Daily Market Report (8 September 2023)
  • Wall Street struggled to close on a mixed note as sentiment remains affected by the likelihood of more rate hikes by the Feds later this month attributed to the still strong labour market.
  • As a result, though the DJI Average added 57 points, the Nasdaq lost 124 points despite the US 10-year yield easing to 4.25%.
  • In Hong Kong, the HSI continue to slide as it lost almost 250 points in view of China’s weak exports in August underpinning hopes for more aggressive stimulus.
  • Meanwhile, the Chinese Yuan also declined to a 15-year low from averaging 6.4 earlier this year to currently 7.3/US$1 or a drop of 18%.
  • Back home, the FBM KLCI ended flat due to some late barging hunting activities despite the regional weakness.
  • Although we believe sentiment to stay cautious in view of the external factors, we remain positive that accumulation of stocks to persist hence expect the index to hover within the 1,460-1,470 range today.
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