Daily Market Report (10 November 2023)
  • Wall Street closed lower as sentiment was affected by the latest comments from Jerome Powell that more may be required to attain the Fed targeted inflation level.
  • Though many are confident that recent economic data are showing signs of slowing down, it was the volatility within the Treasury yields that spooked traders.
  • As such, the DJI Average lost 220 points while the Nasdaq declined by 129 points as the 10-year yield ended higher at 4.632%.
  • Over in Hong Kong, the HSI declined by 57 points as the latest weak data on consumer and producer prices last month ignited concerns on the state of domestic demand thus more stimulus may be needed from the Chinese authorities to spur demand.
  • Back home, the FBM KLCI fell for the 3rd consecutive day due to the lack of catalysts amid a mixed regional performance.
  • The expected bargain hunting activities did not materialize but we remain adamant that this will emerge anytime soon.
  • A check on the corporate results so far indicates that all is well thus we expect the index to trend within the 1,450-1,460 range today.
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Daily Market Report (9 November 2023)
  • It was a mixed day on Wall Street as traders were mainly sidelined ahead of inflation data to be out next week.
  • Meanwhile, there was a shift of funds from equities to bonds as the US 10-year yield continue to slide that ended at 4.492%.
  • As such, the DJI Average lost 40 points while the Nasdaq added 11 points.
  • In Hong Kong, the HSI lost another 101 points as fears of a deflation in China emerged as many are expecting both October’s consumer and producer prices to be announced today to decline.
  • Back home, the FBM KLCI declined to below the 1,460 level weighed mainly by selling on the Banks which was rather surprising.
  • Nonetheless, we remain positive on the Banks as the financial sector should maintain its dominance in supporting the overall corporate earnings growth for this year.
  • Thus, we believe some bargain hunting may emerge for the Banks anytime soon hence expect the index to hover within the 1,455-1,465 range today.
  • Meanwhile, Energy related stocks may face some headwinds from the recent sharp decline in crude oil price that saw the Brent crude retreated to below US$80/barrel.
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Daily Market Report (8 November 2023)
  • Wall Street again ended higher as traders continue to bet that the Federal Reserve will end their interest rate hike cycle despite sentiment remains in cautious mode.
  • Hence, while the DJI Average closed slightly higher by 57 points, the Nasdaq jumped by 121 points as the US 10-year yield slid to 3.569%.
  • In Hong Kong, the HSI declined by 296 points as China’s exports sank lower than expected in October reigniting fears of the country’s economic recovery.
  • As for the local bourse, the FBMKLCI dipped marginally amid a broadly weaker regional market performance after Monday’s strong show.
  • Nonetheless, we noticed there were some bargain hunting activities at around the 1,460 level yesterday thus this may act as the immediate psychological support thus we expect the index to hover between the 1,460-1,470 range today.
  • Meanwhile, crude oil prices declined with the Brent crude ended at US$81.50/barrel on worries of China’s state of economy.
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Daily Market Report (7 November 2023)
  • Wall Street took a breather but still closed slightly higher as the market may be consolidating from the recent rally and may have outpaced fundamentals.
  • As such, the DJI Average gained a mere 34 points while the Nasdaq added 40 points as the US 10-year yield climbed to 4.647%.
  • Over in Hong Kong, the HSI jumped by 302 points to almost the 18,000-level buoyed by a possible early cut in interest rates and more assistance from China to stabilize the market.
  • On the home front, the FBM KLCI surged past the 1,460 mark from broad-based buying amid the improving market sentiment.
  • We reckon stock accumulation to persist predominantly from foreign funds thus expect the index to hover within the 1,460-1,470 range today and may surpass the 1,500 mark anytime soon.
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Daily Market Report (6 November 2023)
  • Wall Street rallied as sentiment turned positive following a weaker than expected job data indicating that the Federal Reserve rate hike campaign could be over.
  • As a result, the DJI Average gained 222 points while the Nasdaq added 184 points with the US 10-year yield easing to 4.577%.
  • In Hong Kong, the HSI jumped 433 points taking the positive cue from Wall Street coupled with data showing that China’s services activity in October grew higher than the previous month.
  • Back home, the FBM KLCI closed higher at almost the 1,450 mark as buyers returned amid an improving investment climate.
  • We believe the improving market undertone should spur the local bourse higher today thus expect the index to hover within the 1,450-1,460 range.
  • Meanwhile, the Ringgit strengthened against the US$ to around 4.72 from almost 4.80 previously on expectations that the Fed will pause with their rate hikes.
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