Daily Market Report (3 November 2022)
  • Wall Street tumbled as the Federal Reserves hiked rates by 75bps and hinted with more to follow as it continues to fight inflation.
  • As a result, the DJI Average lost 505 points with the Nasdaq declined by 366 points while the US 10-year yield inched higher to almost the 4.1% level.
  • For the local bourse, the FBM KLCI rebounded above the 1,450 mark supported by buying on Plantation and Telco related counters.
  • Nonetheless, we anticipate some headwinds for the local bourse as eyes will be on Bank Negara move on interest rates today.
  • Therefore, we expect the index to hover between the 1,440-1,460 range today as sentiment is seen cautious.
  • While many expect BNM to impose a 25bps increase, we reckon Technology stocks to be high on the selling list as regional markets may be drag into negative territory today.
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Daily Market Report (2 November 2022)
  • Wall Street closed lower as hopes that the Federal Reserves may ease their stance on rate hike were dented from the stronger than expected job data.
  • As a result, the DJI Average lost 80 points after a strong opening while the Nasdaq declined by 97 points as the US 10-year yield remained at the 4.05% level.
  • On the local front, the FBM KLCI ended lower attributed to profit taking activities despite a better regional performance.
  • The benchmark index had lost 20 points over the last 2 trading days and we reckon some bargain hunting activities to emerge although market undertone have turned cautious.
  • For today, we expect the index to hover between the 1,440-1,455 range with buying interests to focus on Plantation stocks.
  • Crude palm oil surged past the RM4,200/tonne level as Indonesia raised their exports reference price.
  • Meanwhile, the Brent crude climbed to almost USD95/barrel due to lower inventory level.
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Daily Market Report (1 November 2022)
  • As expected, Wall Street closed lower as sentiment turned cautious ahead of the Federal Reserves meeting over the next 2 days.
  • The DJI Average lost 129 points while the Nasdaq declined by 114 points as the US 10-year yield inched higher at 4.05%.
  • Back home the FBM KLCI ended at a 1-month high of attributed to some bargain hunting activities.
  • Though we reckon trading may be rather subdued today with eyes on the rate hikes in the US.
  • Nonetheless, we expect the index to trend between the 1,455-1,470 range today as buying should continue on local equities in particular on Banks and Telco related stocks.
  • Meanwhile, we believe Bank Negara may look to hike rate by 25bps during the Monetary Policy Committee (MPC) meeting on Wednesday and Thursday hence should provide catalyst on the Banking stocks.
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Daily Market Report (31 October 2022)
  • Wall Street surged as all 3 major indices closed steeply higher as traders are hoping that the Federal Reserves will be less aggressive with rate hikes going forward.
  • The DJI Average added a massive 828 points while the Nasdaq gained 310 points after a week-long decline as the US 10-year yield remained at the 4.0% mark.
  • Whether such uptrend is sustainable remains to be seen.
  • At home, the FBM KLCI dipped below the 1,450 level due to some foreign selling.
  • Reflecting the buoyant US market, we reckon regional markets to climb higher today and expect the local bourse to do the same as well.
  • Therefore, we anticipate the index to trend between the 1,450-1,70 range today with interests on the Banks and Technology sectors.
  • On the flipside, Plantation stocks may see some profit taking as the crude palm oil dipped to below the RM4,000/tonne.
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Daily Market Report (28 October 2022)
  • Wall Street closed mixed after another volatile session as investors mulled the Federal Reserve’s path of interest-rate hikes while assessing mixed economic data and a slew of earnings reports.
  • Meanwhile, the Dow climbed nearly 200 points for its fifth day of wins as he US economy grew at a 2.6% annualized pace for the period, against the economists estimate of 2.3% growth.
  • Back home, the FBM KLCI closed in negative territory due to some minor corrections although the broad market was slightly higher.
  • We maintain our positive view over the local market given the strong support from the local institutions and anticipate the FBM KLCI to trend within a wider range of 1,450-1,470 for today with buying mainly on banking, plantation and telco stocks while we reckon the poor performance on Nasdaq may have some negative impact on tech stocks today.
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