Daily Market Report - 9 June 2025
  • Wall Street closed broadly firmer on the back of higher than expected nonfarm payrolls hence easing concerns of an imminent economic slowdown in the US.
  • On the flipside, Tesla shares continue to slide amid the sparring match between Musk and Trump.
  • Meanwhile, the US 10- year yield edged higher to 4.506%.
  • As for Hong Kong, the HSI declined to below the 23,800 level amid some profit takings as Xi-Trump phone call failed to address any overriding concerns as more fresh catalysts are required to prop up the market.
  • Back home, the FBM KLCI failed to sustain its impressive performance on Thursday as the index stuttered to end just above the 1,515 level.
  • Trading activities remained muted as seen from the pathetic daily volume which dwindled to below the 2.0bn shares mark.
  • This could be attributed to the widespread downgrades of the benchmark index target for 2025 by the research fraternity recently.
  • As such, we expect the index to hover within the 1,510-1,520 today.
Daily Market Report - 6 June 2025
  • Wall Street ended lower as sentiment was affected by the ongoing spat between Trump and Elon Musk.
  • Meanwhile, all eyes were also on Xi-Trump’s phone call which was deem very good by Trump and that a meeting between the 2 may be held soon.
  • On the flipside, the latest job data is showing a slowing labour market as the US 10-year yield edged slightly higher at 4.391%.
  • Over in Hong Kong, the HSI continues to climb to almost the 24,000 level as sentiment was boosted by the China’s PMI (purchasing managers’ index) for May that beat consensus allaying fears of an economic slowdown.
  • On the home front, the FBM KLCI sprinted to almost the 1,520 mark possibly due to more aggressive stock accumulation by the local institutions.
  • We were indeed surprised by this sudden strong buying interest after a lackluster display over the past month.
  • For today, we expect the index to hover within the 1,515-1,530 range
Daily Market Report - 5 June 2025
  • Wall Street ended mixed as hiring data from the private sector hit the lowest level in 2 years on concerns over prevailing uncertainty is weighing on the US economy.
  • Meanwhile, Trump again criticized Fed’s Powell for being too late on rate cut as the 10-year yield easing to 4.357%.
  • As for Hong Kong equities, the HSI maintained its uptrend to close at almost 23,700 or near a 2-month high as traders remained confident that a negotiation between China and the US will take place anytime soon.
  • Back home, the FBM KLCI finally reversed its recent downtrend to close in positive territory attributed to last minute bargain hunting.
  • Overall trading activities remained muted as displayed by the low daily volume of 2.4bn shares.
  • We noticed there has been a spate of downgrades on the FBM KLCI target this year in view of prevailing trade uncertainty.
  • Nonetheless, we envisage bargain hunting activities to prevail, hence expect the index to trend within the 1,505-1,515 range today.
Daily Market Report - 4 June 2025
  • Wall Street closed broadly higher as sentiment was boosted by potential reversal of Trump’s tariff policy which many see as more of a negotiation tool. Nonetheless, many are also wary of the tariff’s effects on the US economic data. Meanwhile, the US 10-year yield inched higher at 4.458%. In Hong Kong, the HSI rebounded past the 23.500 mark as sentiment was buoyed by the likelihood of a high level discussion between Xi and Trump to mitigate the ongoing trade tension. Whether this will take place remains to be seen, but expectations were rather hyped up. On the home front, the FBM KLCI continues to decline and at one moment even broke the 1,500 psychological level. Nonetheless, selective bargain hunting managed to push the index back up to above the 1,500 mark. Overall, market undertone is still weak, hence the directionless benchmark index exacerbated by the persistent selling by foreign funds. For today, we expect the index to trend between the 1,500-1,510 range again.
Daily Market Report - 3 June 2025
  • Wall Street closed on a positive note as traders largely ignored the heightening trade tension between China and the US as both countries are accusing each other of violating the temporary 90-day agreement.
  • Meanwhile, the US 10-year yield edged higher at 4.442%.
  • Over in Hong Kong, the HSI dropped but off the day’s low as sentiment was weighed down by the US/China trade tension which flared up again.
  • Sentiment was further dampened by the disappointing China’s new home sales which declined 8.7% in April though better than the 11.4% drop in March.
  • Back home, the FBM KLCI dipped further last Friday to below the 1,510 level as selling from foreign funds continues.
  • We noticed there were efforts to support the index but was unsuccessful.
  • Notwithstanding this, we would advocate investors to accumulate on the blue chips namely the banks and telcos if and when the index dips below the 1,500 mark.
  • For today, we expect the benchmark index to hover within the 1,500-1,510 range.