Daily Market Report (3 November 2023)
  • Wall Street closed positively with all 3 major indices surged as traders are betting that the Federal Reserve may be done with rate hikes for the year.
  • The DJI Average added 564 points while the Nasdaq climbed 233 points higher as the US 10-year yield eased to almost a month low at 4.661%.
  • Over in Hong Kong, the HSI gained 129 points as sentiment turned dovish as the Hong Kong Monetary Authority (HKMA) maintains its base rate after the Fed pauses rate hikes signaling a possible end to the rate hike cycle.
  • On the home front, the FBM KLCI ended higher taking cue from improved regional performance.
  • Meanwhile as expected, Bank Negara Malaysia (BNM) kept its BLR at 3% which should be good news for all.
  • Underpin by a spate of positive news, we believe the local bourse to see the return of buyers thus expect the benchmark index to hover within the 1,440-1,450 range today.
  • Again, we advocate investors to stay with the Banks as we anticipate the financials to chart decent earnings growth for 2023.
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Daily Market Report (2 November 2023)
  • Wall Street staged a mini rally following the US Fed decision to pause rate hike during its latest FOMC meeting yesterday.
  • Nonetheless, the Fed stressed that it will be open for assessment of the economic situation come the next FOMC in mid-December.
  • As such, the DJI Average gained 221 points while the Nasdaq jumped by 210 points with the US 10-year yield easing to 4.734%.
  • In Hong Kong, the HSI closed marginally lower from selling on BYD and some major tech companies namely Alibaba and JD.com as traders were mostly sidelined, waiting for the policy decision from the US Fed.
  • At home, the FBM KLCI closed broadly lower attributed to selling activities during the late session.
  • Nonetheless, we believe the local bourse to stage a rebound today taking cue from Wall Street and no rate hike thus expect the index to hover within the 1,440-1,450 range as bargain hunting should emerge on the Banks, Telco and Utilities ahead of the impending results season.
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Daily Market Report (1 November 2023)
  • Wall Street closed firmer while traders are still debating whether the Federal Reserves will raise interest rates or not.
  • Many are expecting the Feds to pause with the rate hike amid the strong US economic data with inflation remains at elevated levels.
  • As a result, the DJI Average gained 124 points while the Nasdaq added 62 points despite the US 10-year yield climbing higher to 4.926%.
  • Over in Hong Kong, the HSI declined by 294 points as sentiment was spooked by China’s unexpected decline in manufacturing activities last month.
  • In addition, traders also sold-down BYD as many fear that the EV maker may not be able to sustain its earnings growth going forward.
  • Back home, the FBM KLCI added almost 3 points to stay above the 1,440 mark as market participation remains muted.
  • We believe in line with other regional currencies, the pressure on the Ringgit versus the US$ is still an ongoing concern.
  • For today, we expect the benchmark index to hover within the 1,440-1,450-range attributed to buying support from local institutions.
  • Meanwhile, crude oil prices ease due to build up in inventory as the Brent crude dipped to below the US$88/barrel.
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Daily Market Report (31 October 2023)
  • Wall Street staged a strong rally as traders are betting that the Federal Reserves may be done with interest rate hikes for the rest of 2023 after hitting a “low” on Monday.
  • Therefore, all eyes will be on the FOMC meeting today and tomorrow.
  • Whether this is a relief rally remains to be seen as the DJI Average surged 511 points while the Nasdaq added 146 points with the US 10-year yield remaining elevated at 4.888%.
  • In Hong Kong, the HSI barely stayed above water as sentiment was fragile due to weak earnings from major banks attributed to high impairment charges related to the weak Chinese property market.
  • Back home, the FBM KLCI ended slightly lower to close below the 1,440 mark as investors continue to be sidelined amid weaknesses across the various sectors.
  • Nonetheless, we reckon regional market may take cue from Wall Street today which will spillover to the local bourse.
  • In view of this, we expect the index to hover within the 1,440-1,450 range and expect some bargain hunting activities for the Contractors and Telcos today. 
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Daily Market Report (30 October 2023)
  • Wall Street continued with its decline as traders largely ignored the recent spate of corporate earnings in a bid to navigate out from prevailing confluence of headwind.
  • As a result, the DJI Average lost 367 points while the Nasdaq managed to stay above water adding 47 points supported mainly by Amazon while the US 10-year yield remains stubbornly high at 4.845%.
  • Over in Hong Kong, the HSI jumped 354 points as more companies are supporting share buy-back plans which lifted confidence following the unveiling of the 1 trillion Yuan issuance of special government bonds.
  • On the home front, the FBM KLCI ended slightly higher amid a lacklustre session last Friday.
  • Sentiment remains cautious in view of the heightened volatility on Wall Street and the global currencies versus the US$.
  • Therefore, we believe trading activities on the local bourse may remain muted as we head towards 3Q2023 results season.
  • For today, we expect the index to trend between the 1,435-1,445 range.
  • Meanwhile, crude oil prices rebounded with the Brent crude closing above the US$90/barrel level again on prevailing tension in the Middle east.
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