Daily Market Report (16 August 2023)
  • Wall Street ended on a weak note as sentiment is affected by the slowdown in China coupled with the condition of the Banking sector.
  • Recent downgrade on the US banks saw more sell-down on the financial stocks as the DJI Average 361 points while the Nasdaq declined by 157 points on the back of higher US 10-year yield which topped 4.219% or a YTD high.
  • In Hong Kong, the HSI continued with its slide as the index lost 192 points on pessimism of China’s slowdown and that the latest 15bps cut by PBOC may not be enough to boost the Chinese economy.
  • Weak domestic spending and rising unemployment continue to plague China in the absence of desire stimulus from the Government.
  • At home, the FBM KLCI closed higher amid a mixed regional performance as buying support from foreign funds remains obvious.
  • Nonetheless, we reckon sentiment may turn cautious today in view of the headwinds from both China and the US.
  • With the index currently hovering around a 6-month high, we reckon some profit taking activities may emerge hence expect the index to trend between the 1,455-1,465 range today.
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Daily Market Report (15 August 2023)
  • Wall Street closed firmer regardless that sentiment remained cautious ahead of more earnings report from major retailers coupled with July’s retail sales out data later today.
  • The DJI Average added 26 points while the Nasdaq was 146 points higher despite the US 10-year yield edging higher to 4.201%.
  • Meanwhile in Hong Kong, the HSI declined to below the 19,000 mark as sentiment continued to be weighed by China’s struggling economy over weak loans and credit growth as well as prevailing crisis within the property sector.
  • Back home, the FBM KLCI pared earlier losses to end flat from late buying activities illustrating that the market undertone is still strong notwithstanding a weak regional performance.
  • The Construction sector, as expected generated solid buying interests as many are expecting the Government to kick-start the domestic economy via the rolling out of infra-related projects soon.
  • Thus, we anticipate buying support to prevail and see the index to hover between the 1,460-1,470 range today with accumulation on the banking stocks to persist.
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Daily Market Report (14 August 2023)
  • Wall Street ended the week on a mixed note attributed to contradicting data from the CPI and PPI.
  • While the consumer price index came in within expectations, the producer price index for July was higher than estimates.
  • As such, the DJI Average gained 105 points while the Nasdaq lost 93 points as the US 10-year yield rose to 4.158%.
  • Over in Hong Kong, the HSI declined by 173 points dragged mainly by property stocks as concerns over the sector downturn deepens amid the slow recovery in China.
  • On the home front, the FBM KLCI closed almost flat from late buying activities after a slow start last Friday attributed to the looming state election the next day.
  • We believe results from the recently concluded state election bodes well for the equity market as more inflow of foreign funds is anticipated going forward.
  • We are indeed optimistic about the results despite initial rumours that Selangor may be a tough contest.
  • For today, we expect the index to hover within the 1,460-1,475 range with interest to center on the Construction and Banking related stocks.
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Daily Market Report (11 August 2023)
  • Wall Street closed positively on the back of July’s CPI figure which came in marginally lower than expected.
  • Nonetheless, all 3 major indices ended off the day’s high as sentiment remains cautious following a decent run-up recently.
  • The DJI Average gained 53 points while the Nasdaq added 16 points as the US 10-year yield edged higher to 4.107%.
  • In Hong Kong, the HSI recouped earlier losses attributed to late buying activities following fresh concerns of Biden’s latest restrictions on investments into China.
  • Back home, the FBM KLCI slipped lower from profit taking activities amid a lacklustre performance within the region.
  • We reckon sentiment may turn slightly cautious today as we march towards the state election tomorrow hence anticipate the index to hover within the 1,455-1,465 range.
  • Despite the Brent crude price falling to around the US$86/barrel level yesterday, market observers remain optimistic that crude oil prices will trend higher due to tighter supply and resilient demand.
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Daily Market Report (10 August 2023)
  • Wall Street ended on a weak note as traders wait for July’s CPI figure which will be out later today.
  • Meanwhile, recent downgrade on the US banking sector continue to weigh down market sentiment as the DJI Average declined almost by 200 points while the Nasdaq lost 162 points as the US 10-year yield eased marginally to 4.016%.
  • In Hong Kong, the HSI rebounded slightly as traders are betting that recent deflationary signs may prompt the Chinese government to be more aggressive with their stimulus policy to spur growth.
  • Domestically, the FBM KLCI closed broadly higher as buying from foreign funds continued pushing the index to around a 5-month high.
  • Recent impressive performance may be a definitive sign that foreign funds are gravitating back to ASEAN which have been trading at a discount over the past years.
  • Judging from the buying pattern, we reckon the index may experience more upside hence expect the index to hover within the 1,460-1,470 range today.
  • Meanwhile, the Brent crude price trended close to the US$88/barrel due to huge decline in inventory.
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