Daily Market Report (17 February 2023)
  • Wall Street retreated on more inflation worries following the release of a higher than expected producer price index coupled with a lower unemployment claims.
  • As a result, the DJI Average declined by 431 points while the Nasdaq lost 215 points as the US 10-year yield closed higher at above the 3.86% level.
  • Over in Hong Kong, the HSI rebounded to almost the 21,000 mark over reports that China may boost consumption via injection of liquidity possibly by lowering the banks’ reserve requirement ratio.
  • Back home, the FBM KLCI closed on a weak note due to profit taking activities after a positive opening as the index closed below the 1,485 level.
  • In view of Wall Street’s performance overnight, we reckon regional markets to experience heighten volatility hence should add some pressure on the local bourse as we anticipate the benchmark index to trend between 1,480-1,490 range today.
  • We reckon Tech stocks may face with some headwinds today on the back of the surge in Treasury yields in the US.
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Daily Market Report (16 February 2023)
  • Wall Street reversed earlier losses to end in positive territory as sentiment turned upbeat following the release of a higher than expected retail sales for January despite inflation remains a sticky issue.
  • As a result, the DJI Average was up by 39 points while the Nasdaq closed 110 points higher as the US 10-year yield edged higher at 3.8%.
  • In Hong Kong, sentiment remains spooked by the US inflationary pressure and interest rates worries as the HSI dipped by another 301 points to close at a 6-week low.
  • Back home, the FBM KLCI closed on a high following an indifferent opening attributed to last minute buying again particularly on Telcos stocks.
  • Nonetheless, we reckon market undertone is still cautious amid a rotational accumulation of blue chips.
  • Therefore, we see the benchmark index to hover between the 1,485-1,495 range today while waiting for the second tabling of Budget 2023 slated for next Friday which should see more activities for the Construction sector to revive the nation’s economy.
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Daily Market Report (15 February 2023)
  • Wall Street closed on a mixed note following a higher than expected January’s consumer price index (CPI) heightening concerns of more rate hikes by the Federal Reserves going forward.
  • The DJI Average lost 157 points after a choppy session while the Nasdaq added 68 points as the US 10-year yield inched higher to 3.75%.
  • Over in Hong Kong, the downtrend of the benchmark HSI continued as it declined 51 points or a 1-month low amid more outflow of funds.
  • Meanwhile, the Hong Kong Monetary Authority (HKMA) mopped up HK$4.22bn in local currency to stabilize the HK$.
  • On the domestic front, the FBM KLCI surged past the 1,480 mark attributed to accumulation of blue chips by foreign funds.
  • We reckon such bargain hunting activities to continue ahead of the earnings season later this month as many are expecting corporate Malaysia to churn out decent earnings growth for 2022.
  • In view of the mixed performance in the US overnight, we reckon flight of funds may return hence anticipate the index to hover between the 1,475-1,490 range today with focus on the Banks today.
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Daily Market Report (14 February 2023)
  • Wall Street rebounded ahead of the crucial consumer price index data to be out later today as traders are betting that inflation may be peaking and a possible pause of aggressive rate hikes by the Federal Reserves.
  • The DJI Average was up by 377 points while the Nasdaq added 174 points as the US 10-year yield eased slightly to 3.7%.
  • In Hong Kong, the benchmark HSI closed 26 points lower as sentiment turned cautious on the escalating tension between the US and China as the Biden administration sanctioned 6 Chinese companies following the balloon incident.
  • Back home, the FBM KLCI ended flat due to some last minute buying activities as market undertone remains sluggish.
  • The market is seen directionless today due to lack of fresh catalysts hence we expect the index to hover between the 1,475-1,480 range.
  • Buying interests may return to Tech related stocks after a sell-down yesterday.
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Daily Market Report (13 February 2023)
  • Wall Street ended on a mixed note as traders are still pondering on the Federal Reserves’ next move amid various mixed economic signals.
  • Thus, though the DJI Average added 169 points, the Nasdaq lost 71 points as the US 10-year yield inched higher at above the 3.74% mark.
  • Over in Hong Kong, the HSI declined by 434 points on mixed signs of China’s recovery coupled with the renewed US/China tension that stoked concerns on possible new sanctions on Chinese tech companies.
  • On the home front, broad based bargain hunting finally emerged on the local bourse as investors snapped up Banking and Energy related stocks pushing the FBM KLCI higher to almost the 1,475 level.
  • However, we reckon trading activities may turned cautious following last Friday’s mixed performance in the US hence expect the index to hover within the 1,470-1,480 range today.
  • Tech related counters may faced with some headwinds today on higher US treasury rate.
  • Meanwhile, despite improved output from the US, crude oil prices all closed higher with the Brent crude edged above the US$86/barrel.
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