Daily Market Report (3 March 2023)
  • Wall Street closed firmer from another relief rally due to strong late buying on US equities amid some mixed signals on the economic front as traders are betting on another 25bps hike by the Federal Reserves this month.
  • As a result, the DJI Average gained 342 points while the Nasdaq added 83 points despite the higher US 10-year yield edged at 4.06%.
  • In Hong Kong, following a strong recovery a day before, profit taking activities saw Hong Kong equites closed lower yesterday as the HSI declined by 190 points.
  • Meanwhile, investors are waiting for additional stimulus during the National People’s Congress meeting over the weekend.
  • At home, the FBM KLCI finally closed positively after 6 days of consecutive declines attributed to bargain hunting activities particularly on Plantation and Telco related stocks.
  • As such, the index managed to end above the 1,455 level and we reckon such accumulation to persist thus expect the index to tend between the 1,450-1,460 range today.
  • The just concluded results season saw a rather good performance from corporate Malaysia with no drastic revision on earnings growth is seen at around 10% this year.
  • Earnings from the Banks remained resilient, and we anticipate some buying interests on the Banks today.
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Daily Market Report (2 March 2023)
  • Wall Street closed mixed on concerns that the Federal Reserves may look at a steeper rate hike as price disinflation is losing steam in the US.
  • Despite the DJI Average added 5 points, the Nasdaq declined by 76 points with the US 10-year yield edged higher to above 3.99%.
  • Over in Hong Kong, the HSI broke out from its slump as it added 834 points on the back of strong economic data from China suggesting a strong economic recovery.
  • As for the local bourse, the FBM KLCI fell to just above the 1,450 level despite the regional improvements.
  • Though we expect bargain hunting activities to emerge anytime soon, overall sentiment remains fragile following the sell-down 2 weeks ago.
  • We suspect investors are waiting for BNM Monetary Policy Committee meeting on 8 & 9 this month whether the OPR would be revised higher.
  • For now, we are betting that BNM may refrain from hiking the OPR before the FOMC meeting on 21 & 22 March.
  • Amid prevailing uncertainties, we reckon the index to trend between the 1,445-1,455 range today as the Banks and Telco stocks remain as our favourites.
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Daily Market Report (1 March 2023)
  • Wall Street closed on a weak note as the latest economic data is showing weaker business confidence in the US.
  • Following a volatile session, the DJI Average lost 232 points while the Nasdaq declined by 11 points with the US 10-year yield ended marginally higher at 3.93%.
  • In Hong Kong, the HSI continued with its correction to end 157 points lower amid the heightened geopolitical tension that is curbing risk appetite.
  • On the home front, the lack buying interests saw the FBM KLCI hovered within a tight range before closing slightly lower at just below the 1,455 level.
  • Although there were some accumulations on banking stocks following the latest solid earnings reports, overall sentiment remained rather cold.
  • We reckon the local bourse to remain stuck in a consolidation mode amid the uncertainties in the US hence expect the index to hover within the 1,450-1,460 range today.
  • Amid the prevailing volatility, we would advocate investors to look at companies that offer solid dividend yields within the Banking, Gaming and Reits segment which are offering reasonable value proposition.
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Daily Market Report (28 February 2023)
  • Wall Street staged a relief rebound following a dreadful performance of US equities last week amid a marginal decline in the US 10-year yield that closed at 3.92%.
  • As such, the DJI Average added 72 points while the Nasdaq was also up by 72 points after a choppy session.
  • Over in Hong Kong, the HSI lost 66 points to below the 20,000 mark or a YTD low as foreign funds continued with their sell-down. Sentiment has turned hesitant as about China’s economic recovery as investors are now looking at the “two sessions” meeting in Beijing, China from March 4 on hopes of more policy stimulus.
  • Back home, the FBM KLCI pared earlier losses to close on a flat note thanks largely to some late buying on banking stocks.
  • For today, we believe some bargain hunting activities to emerge soon as the benchmark index had fallen by 2.7% YTD depicting that local equities are trading at very reasonable valuations.
  • We reckon the Banks, Plantation and Telcos stocks are ripe for accumulation. Reflecting the reverse in sentiment, the Ringgit had also weakened against the greenback currently at RM4.45/USD1.
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Daily Market Report (27 February 2023)
  • Wall Street closed broadly lower as concerns on inflation heightened following the release of a higher than expected personal consumption expenditure price index that may force the Federal Reserves to maintain high interest regime longer than anticipated.
  • The DJI Average declined by 337 points while the Nasdaq lost 195 points as the US 10-year yield remained at almost 3.95%.
  • In Hong Kong, the HSI slipped 341 points to its lowest level this year at just above the 20,000 mark due to a mixed bag of earnings from major Chinese tech companies coupled with strong headwinds from the US.
  • Back home, the FBM KLCI ended flat from late buying activities spurred by the positive reaction to the re-tabled Budget 2023.
  • We reckon sentiment on the local bourse to remain cautious mainly attributed to the US weakness but with some positive bias.
  • Thus, we reckon the index to hover within the 1,455-1,465 range today with interest on the Banks, Construction and Telco sectors today.
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