Daily Market Report (10 March 2023)
  • Wall Street closed sharply lower as sentiment turned negative on concerns that high interest rates and the Federal Reserves’ hawkish stance are to remain over a longer period.
  • As a result, the DJI Average lost 543 points while the Nasdaq declined by 238 points despite the US 10-year yield ended lower at 3.91%.
  • Over in Hong Kong, the HSI slumped 125 points to below the 20,000 level on concerns that the ongoing US/China tension will impact China’s access to the most advance technology that is bad news to the technology sector hence the sell-down on Chinese tech companies yesterday.
  • Back home, the FBM KLCI weakened to just below the 1,450 mark despite BNM’s decision to maintain the OPR which we deem as good news for the equity market.
  • Nonetheless, we suspect overall sentiment would still be determine by the FOMC meeting next Monday and Tuesday.
  • Meanwhile, reports that EPF contributors are allowed to use their Account 2 as collateral for personal loans applications should unlock some liquidity into the market that may act as a temporary reprieve to many with cashflow difficulties.
  • However, we expect trading should remain lackluster on the local bourse and expect the index to trend between the 1,450-1,460 range with some accumulation on the Construction and Telco related stocks today.
Download
Daily Market Report (9 March 2023)
  • Wall Street ended mixed as concerns over Jerome Powell’s comment of a prolonged high interest rates environment continue to spook traders.
  • As such, the DJI Average declined by 58 points while the Nasdaq rebounded by 46 points as the US 10-year yield inched higher at almost the 4.0% mark.
  • In Hong Kong, the sell-down on Hong Kong equities gathered pace on fresh concerns over China’s latest overhaul on regulation over the financial sectors.
  • As a result, the index lost a massive 483 points to end at just above the 20,000 level.
  • On the domestic front, the FBM KLCI maintained its lackluster performance as the index fell 4 points amid a weak regional performance.
  • For today, we reckon the index to remain stuck within a tight range of between 1,450-1,460.
  • Meanwhile, reports that the RM50-55bn High Speed Rail (HSR) project could be revived provided it is funded by the private sector should inject some excitement into the Construction sector.
  • Amongst others, we believe contractors namely Gamuda, YTL Corp, MRCB and IJM Corp could be the frontrunners for the project.
Download
Daily Market Report (8 March 2023)
  • Wall Street closed sharply lower after Federal Reserves Chair Jerome Powell suggested that interest rate needs to go higher and longer, fueling concerns that a larger rate hike during the next FOMC meeting on the 21 & 22 this month.
  • As a result, the DJI Average lost 575 points while the Nasdaq declined by 145 points with the US 10-year yield inched higher at 3.97%.
  • In Hong Kong, the HSI ended 69 points lower after a solid start as investors became wary of the escalating US-China tech rivalry after Beijing calls for self-sufficiency to counter sanctions by the US.
  • On the home front, the FBM KLCI gained 6 points from broad-based accumulation of Banks, Plantation and Telco stocks.
  • Nonetheless, we expect some headwinds on stocks today following the Feds rate commentary thus expect the index to trend between 1,450-1,460 range amid regional weaknesses.
  • Meanwhile, Oil & Gas stocks should again see some selling pressure following the decline in crude oil prices attributed to inventory build-up that saw the Brent crude to close USD3 lower at USD83/barrel.
Download
Daily Market Report (7 March 2023)
  • Wall Street closed mixed as sentiment remained cautious ahead of Federal Reserves’ Chairman Jerome Powell congressional testament today and tomorrow.
  • Though the DJI Average was up 40 points, the Nasdaq declined by 13 points as the US 10-year yield stayed at 3.96%.
  • In Hong Kong, the HSI added 36 points as investors were rather disappointed with a conservative economic growth target of 5% for China during the “Two Sessions” meeting over the weekend.
  • Nonetheless, many are expecting some additional stimulus by the new incoming Premier next week.
  • Back home, the FBM KLCI ended marginally lower attributed to some last minute selling activities namely on the Banks and Telco related stocks.
  • For today, we reckon sentiment to remain cautious as investors may opt to stay sidelined ahead of the Bank Negara’s MPC meeting over the next 2 days.
  • As such, we reckon trading to be lackluster today and expect the index to trend between the 1,450-1,460 range.
  • There may be some headwinds on the Oil & Gas stocks today as global demand is expected to wane due to the lower than anticipated China’s growth forecast.
Download
Daily Market Report (6 March 2023)
  • Wall Street closed broadly higher as traders are hoping that recent cumulative rate hikes by the Federal Reserves will be sufficient to tame inflation as the US 10-year yield eased to 3.96%.
  • Therefore, while the DJI Average added 387 points, the Nasdaq gained 226 points.
  • Over in Hong Kong, the HSI rebounded by 138 points as investors are hoping that improved economic activities in China will underpin corporate earnings growth.
  • Meanwhile according to UBS, Chinese household savings due to the 3-year lockdown may probably generate as much as RMB600bn (USD87bn) of inflows into stocks that should add further impetus to equities.
  • On the home front, the FBM KLCI ended almost 2 points lower despite broad-based accumulation on blue chips last Friday.
  • Market undertone remained cautious as investors are eyeing at Bank Negara Malaysia’s MPC meeting on Wednesday and Thursday if the OPR will be adjusted.
  • Our stance is that BNM will maintain the OPR at current level for now.
  • Nonetheless, we reckon the index to trend between 1,450-1,460 range today with interests possibly centre on Energy stocks following a strong closing of crude oil prices that saw the Brent crude at almost USD86/barrel buoyed by China’s higher economic activities.
Download