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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Daily Market Report (24 February 2023)
  • Wall Street ended higher after volatile trading sessions as investors remained concerned about the path of the US Federal Reserve’s rate hikes.
  • The Dow gained 109 points as the US 10-year yield eased 3 basis points at 3.921%.
  • The US Fed indicated that inflation is still above the central bank’s target of 2%, although data has shown some decline in the monthly pace of price increases.
  • In HK, the HSI ended marginally lower following a heavy regional selldown as investors responded negatively to the FOMC meeting minutes.
  • Back home, FBM KLCI fell by 0.43% to 1,457.65 in a lacklustre market ahead of the re-tabling of Budget 2023 today.
  • We reckon the recent selldown offers more potential upside as the FBM KLCI’s forward PER fell to below 13x, far from its as compared with its 5 years average of around 18x.
  • Hence, we anticipate bargain hunting to emerge and reckon the benchmark index to stage a rebound today, trending within the 1,460-1,475 range.
  • Buying interests may return to Telco stocks after a strong selldown yesterday.
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Daily Market Report (23 February 2023)
  • Wall Street ended broadly lower after exchanging with gains and losses as the minutes from the Federal Reserve’s February meeting added to expectations that further rate hikes are in the pipeline to squeeze inflation.
  • Over in HK, the HSI close marginally lower due to market correction amid the regional selldown overall on cautious sentiment as investors weighed the prospect of central banks tightening policy more than previously expected to tame inflation.
  • Back home, FBM KLCI closed lower in a lacklustre market with broad based selling due to absence of buying catalyst.
  • We reckon the FBM KLCI to stage a rebound and expect it to hover within the 1,465-1,475 range for today.
  • We believe Oil and Gas may continue to see some selling pressure as Brent Crude fell to below USD80 per barrel.
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