Daily Market Report (7 December 2022)
  • Wall Street continued to slide as traders are now worried of a potential hard landing for the US economy amid fresh recessionary fears.
  • The DJI Average closed 350 points lower while the Nasdaq declined by 225 points as the US 10-year yield ended lower at 3.53%.
  • On the domestic front, the FBM KLCI ended flat as persistent buying support helped recoup earlier losses despite a broadly weaker regional performance.
  • As such, we reckon the local bourse is ripe for a rebound after a 30-point decline over the past 3 days.
  • Meanwhile, the staggered easing of Covid regulations in China should bode well for regional markets performance.
  • As such, we expect the index to hover between the 1,470-1,490 range today with focus possibly shifting to the Plantation stocks with the crude palm oil topping above the RM4,000/tonne on news of Indonesia’s biofuel plans that could reduce supply for exports.
  • As for crude oil, prices slumped on concerns of slowing global demand as the Brent crude price dipped to below the USD80/barrel that may see some knee jerk reactions on the Oil & Gas stocks today.
Daily Market Report (6 December 2022)
  • Wall Street tumbled as fears that the Federal Reserves will continue to be aggressive with rate hikes arose following a stronger than expected economic data.
  • As a result, the DJI Average lost 483 points while the Nasdaq declined by 222 points as the US 10-year yield inched higher to 3.58%.
  • Back home, the FBM KLCI fell to almost the 1,470 level as profit taking activities continued.
  • Nonetheless, we reckon buying activities to emerge anytime soon as recent sell-down seems unjustified as the latest easing of Covid restrictions in Shanghai and Hangzhou may continue to support regional markets.
  • Therefore, we expect the index to rebound and hover within the 1,470-1,490 range today despite the downturn on Wall Street overnight.
  • Meanwhile, special draws for 4D to revert to 8 from 22 next year may see some headwinds for the NFOs (Number Forecast Operators) today.
Daily Market Report (5 December 2022)
  •  Wall Street closed mixed as traders remained confident that the Federal Reserves will tone down rate hikes despite the higher than expected job data.
  • The DJI Average gained almost 35 points while the Nasdaq lost a mere 21 points as the US 10-year yield continue to slide to the 3.49% level.
  • At home, profit taking activities saw the index slipped to almost the 1,480 level.
  • However, with the recent announcement of the Cabinet of which was broadly well received, we reckon the index may see a reversal today as we expect it to trend between the 1,480-1,500 range.
  • We anticipate buying interest to return on the Banks following a week of decline.
  • Meanwhile, the Ringgit continue to strengthen against the USD currently hovering at 4.38/USD1.
Daily Market Report (2 December 2022)
  • Wall Street took a breather as traders are waiting for the US job data to be out later today.
  • The DJI Average dropped almost 195 points while the Nasdaq added a mere 14 points as the US 10-year yield continued to decline to around the 3.5% level.
  • As for the local bourse, the FBM KLCI closed above the 1,490 mark but off the day’s high as profit taking activities emerged late in the afternoon session particularly on the Banks.
  • Sentiment remained cautious as we are waiting for the announcement of the Cabinet anytime soon.
  • As such, we expect the index to hover within the 1,485-1,500 range today with QL Resources and AMMB as the new index constituents replacing both Top Glove and Hartalega.
  • Meanwhile, the Ringgit strengthened to almost a 6-month high against the USD at RM4.40/USD1 in view of the less aggressive rate hike by the Federal Reserves which will benefit local importers especially for the consumer and industrial products related companies.
Daily Market Report (1 December 2022)
  • Wall Street surged as traders celebrated the Federal Reserves’ statement that it will be less aggressive with rate hikes going forward.
  • The DJI Average jumped by almost 740 points while the Nasdaq added 484 points as the US 10-year yield dipped to around the 3.61% level.
  • On the home front, the FBM KLCI finally broke out from its consolidation phase supported by strong buying activities in the afternoon session.
  • We reckon recent news to revive the nation’s economy may shift interest to the Construction sector as the multiplier effect is deem the highest to spur domestic economic activities.
  • Meanwhile, easing of restrictions in Guangzhou and Chongqing may also improve regional sentiment thus we reckon the index to trend between the 1,485-1,500 range today.
  • As for crude oil, the Brent crude ended above the USD85/barrel attributed to lower than expected inventory level.