Market Reports

Daily Market Report (13 June 2023)
Daily Market Report (13 June 2023)
  • The bulls continue to charge on Wall Street as traders are betting that the Fed will pause its rate hike during the FOMC meeting tomorrow.
  • Meanwhile, most also expect that the US inflation data will be tame for the month of May giving the likelihood that the Fed will skip its rate hike.
  • Therefore, the DJI Average jumped by almost 190 points while the Nasdaq gained 203 points as the US 10-year yield was flat at 3.743%.
  • Over in Hong Kong, the HSI ended marginally higher on the expected rate pause in the US and that the upcoming economic data from China will show a slowdown thus the anticipated stimulus from Beijing.
  • Back home, the FBM KLCI finally broke out from its slump due to bargain hunting activities across the board.
  • Nonetheless, the benchmark index remains at a 2-week low as we see 1,390 as a strong resistance level.
  • For today, we reckon the index to hover within the 1,380-1,390 range and if there is a decisive breakout from 1,390, we may see 1,400 as the next target.
  • Meanwhile, we believe the Energy sector to see some headwinds as crude oil prices continued to decline with the Brent crude dipped to below the USD72/barrel ahead of the FOMC meeting.
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Daily Market Report (12 June 2023)
Daily Market Report (12 June 2023)
  • Wall Street continues to chart positive gains as traders are looking ahead of upcoming inflation data and the Federal Reserves latest policy announcement.
  • Traders were also encouraged by the uptrend of small and mid cap stocks.
  • As a result, the DJI Average jumped 43 points while the Nasdaq added 21 points despite the US 10-year yield inched higher at 3.743%.
  • In Hong Kong, the HSI jumped 91 points to a 2-week high on expectations that policy makers will inject stimulus to shore up economic recovery following a tame inflation report.
  • Back home, the FBM KLCI closed on a positive note underpinned by broad-based accumulation.
  • Nonetheless, the benchmark index ended off the day’s high as sentiment stayed cautious.
  • For today, we reckon the index to maintain its tight trading range of within 1,375-1,385 range with short term trading stance being rather apparent.
  • Meanwhile, crude oil prices remained quite bearish in view of slowing global demand as the Brent crude declined to below USD75/barrel.
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Daily Market Report (9 June 2023)
Daily Market Report (9 June 2023)
  • Wall Street closed on a positive note as traders are betting that the Feds may pause their rate hike in June in view of inflation which has been inching down.
  • As a result, the DJI Average ended 168 points higher while the Nasdaq added 134 points as the US 10-year yield closed lower at 3.718%.
  • Over in Hong Kong, equities also ended positively following the deposit rate cuts by major banks sparking expectations that borrowing costs may be lowered as a measure to spur economic activities.
  • Meanwhile on the home front, the FBM KLCI declined to just below the 1,375 level as market undertone remains weak.
  • Foreign funds continued to unload their position pushing YTD total outflows above the RM4bn mark.
  • Though bargain hunting activities are expected anytime soon, we reckon the lack of catalysts amid the prevailing political climate may see overall sentiment to be lacklustre.
  • Therefore, we expect the index to maintain its consolidation and hover within the 1,375-1,385 range today but see interests returning to the Tech stocks taking cue from the Nasdaq which is now at its 52-week high.
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Daily Market Report (8 June 2023)
Daily Market Report (8 June 2023)
  • Wall Street closed on a mixed note following a commendable performance of late.
  • The DJI Average gained 92 points buoyed mainly by the buying of regional banks where share price collapsed during the height of the banking crisis.
  • Meanwhile, the Nasdaq lost 171 points as the US 10-year yield surged to 3.793% ahead of next week’s Feds meeting.
  • In Hong Kong, the HSI added 153 points or a 2-week high on hopes that Beijing will come out with more support to aid China’s economic recovery after a slump in external trade.
  • On the home front, the FBM KLCI continued with its downward trajectory with no buying support in store.
  • Despite the index now hovering almost at its 52-week low, investors preferred to remain side-lined.
  • We expect trading on the local bourse to stay quiet in the absence of buying catalysts thus expect the index to trend within the 1,375-1,385 range today.
  • The Energy sector may counter some headwinds today amid the higher US 10-year yield implicating more hikes in rates from the upcoming FOMC meeting.
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Daily Market Report (7 June 2023)
Daily Market Report (7 June 2023)
  • Wall Street closed modestly firmer as all 3 major indices are currently hovering at a 9-month high while waiting for the FOMC meeting next week.
  • The DJI Average added a mere 10 points following some late buying activities as the Nasdaq gained 47 points with the US 10-year yield declined marginally to 3.677%.
  • Over in Hong Kong, the HSI ended on a flat note, off the day’s high largely propelled by property counters as China’s property developers advanced on hopes that Beijing will deliver some stimulus to the sector soon.
  • Nonetheless, profit-taking activities emerged in the afternoon session thus pushing the index lower.
  • Back home, the FBM KLCI closed slightly higher predominantly due to late accumulation of Plantation stocks.
  • For today, we reckon trading to remain subdued as sentiment continue to stay cautious amid prevailing political scenario.
  • Therefore, we expect the index to trend between the 1,380-1,390 range today.
  • Again, we advocate investors to look at Banking stocks following a spate of solid results for the 1Q and that the Financial Index is currently trading at a 6-month low.
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