Daily Market Report (7 September 2023)
  • Wall Street continued with its sluggish performance as concerns over interest rates returned to spook sentiment as the US 10-year yield edged higher to 4.296%.
  • As a result, the DJI Average lost almost 200 points while the Nasdaq slumped by 148 points.
  • Over in Hong Kong, although the HSI pared earlier losses to close flat, underlying confidence remains fragile following an unconvincing corporate earnings season which prompted downgrades on the outlook of Chinese companies going forward.
  • As for the local bourse, the FBM KLCI ended higher as buying activities returned following a downtrend of late.
  • In line with prevailing strong crude oil price, the Oil & Gas counters managed to garner solid buying support.
  • We believe accumulation of stocks to continue amid improving trading volume over the past few days hence expect the index to trend between the 1,460-1,470 range today.
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Daily Market Report (6 September 2023)
  • Wall Street closed on a weak note as rising crude oil prices reignited inflationary concerns as both Saudi Arabia and Russia extended their voluntary cut in supply pushing the Brent crude to a year to date high at above the US$90/barrel.
  • As a result, the DJI Average lost 196 points while the Nasdaq declined by 11 points as the US 10-year yield inched higher to 4.266%.
  • In Hong Kong, the HSI slumped 390 points as confidence continues to be spooked by potential more Country Garden’s default despite having averted a portion of it earlier.
  • Sentiment remains jittery as the Chinese property developer is faced with more debt maturities and traders are concerned that the stimulus package from Beijing may be insufficient to revive the sector.
  • On the home front, the FBM KLCI was also affected by the regional weaknesses affected by the property scene in China.
  • In view of the change in sentiment to cautious mode, we reckon the index to trend within the 1,450-1,460 range today as some bargain hunting activities may emerge.
  • On a more positive note, we noticed volume traded on the local bourse remained elevated at above 4bn shares.
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Daily Market Report (5 September 2023)
  • Wall Street was closed for Labour Day yesterday and a look at the futures of the 3 major indices indicate that sentiment remains rather cautious at the moment.
  • In Hong Kong, the HSI predictably gave a solid performance after a weak August as traders are expecting more stimulus to be rolled out to prop up the ailing Chinese property market as Country Garden averted a potential default.
  • The Hong Kong market was further spurred on by EV makers namely BYD and LI Auto following record sales in August.
  • Back home, the FBM KLCI failed to make any significant inroads due to intermittent profit taking activities as the benchmark index closed on a flat note.
  • Nonetheless, we remain confident that buying activities will persist as illustrated by the improving turnover which surpassed the 4bn mark over the last 2 days.
  • Therefore, we expect the index to hover within the 1,460-1,470 range today.
  • Meanwhile, the Brent crude finally touched the US$89/barrel which is a YTD high.
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Daily Market Report (4 September 2023)
  • Wall Street closed mixed despite a strong opening following a slight uptick in the US unemployment rate to 3.8% in August from 3.5% before.
  • Nonetheless, sentiment remains cautious.
  • Therefore, although the DJI Average gained 115 points, the Nasdaq ended 3 points lower as the US 10-year yield inched higher to 4.181%.
  • Meanwhile, trading on Hong Kong market was halted last Friday because of Typhoon Saola.
  • However, we expect the HSI to see a positive reaction today after more measures were implemented to ease the Chinses ailing property sector plus a cut in the foreign currency reserve requirement ratio from 6% to 4% to stem the declining Yuan against the US$.
  • Back home, the FBM KLCI maintained its impressive performance.
  • As market undertone continues to improve, we reckon the index to trend within the 1,460-1,475 today.
  • Meanwhile, Oil & Gas counters may see some action today as crude oil prices are trending higher in view of the decline in inventory and cut in production with the Brent crude is currently hovering near the US$89/barrel.
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Daily Market Report (1 September 2023)
  • Wall Street ended mixed as all 3 major indices closed on a day’s low as traders are looking at August job data later today.
  • Reflecting the cautious sentiment, the DJI Average lost 168 points while the Nasdaq added 16 points as the US 10-year yield slid slightly to 4.106%.
  • Over in Hong Kong, the HSI declined by another 100 points as the exodus of foreign funds continue.
  • Concerns over the slump in China’s manufacturing activity and debt woes amongst the Chinese developers persist to plague sentiment as recent supportive measures implemented may be insufficient to spur overall demand.
  • Back home, the FBM KLCI closed lower ahead of the National Day celebration yesterday but maintained at above the 1,450 mark.
  • For today, we reckon some buying to return albeit at a muted level amid another mix regional performance thus expect the index to trend between the 1,450-1,460 range today with focus possibly shifted to the Planters following another impressive trend by the CPO currently at around the RM4,000/tonne level.
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