Daily Market Report (19 May 2022)
  • Wall Street was trashed by the bears as fears of inflationary pressures ballooned.
  • The DJI Average lost 1,164 points whilst the tech-heavy Nasdaq declined by 566 points despite the US 10-year yield eased slightly to below the 2.9% level.
  • On the home front, the FBM KLCI managed to close higher although market undertone remains cautious.
  • Nonetheless reflecting the bloodbath on US equities overnight, we believe regional markets to see major headwinds today.
  • As such, we reckon the index to possibly trend lower and expect it to hover within the 1,540-1,555 range today.
  • Meanwhile, the MGS 10-year yield has risen to a multi-year high of above 4.5% indicating some selling activities.
  • Crude oil prices eased marginally with the Brent closing below the US$110/barrel amid the confusion on demand and supply situation.
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Daily Market Report (18 May 2022)
  • Wall Street staged a relief rally as all 3 major indices ended off their respective lows.
  • The DJI Average was up by 431 points while the Nasdaq closed 322 points higher despite the US 10-year yield edged closer towards the 3% mark.
  • As for the local bourse, the FBM KLCI closed higher but was off the day’s high attributed to some last minute selling as overall sentiments remained rather cautious.
  • For today, we reckon the index to possibly trend between the 1,545-1,555.
  • Meanwhile, in a very rare occasion the WTI closed higher at US$114/barrel vs the Brent crude at US$112/barrel as the debate whether to ban Russian oil imports in Germany continues.
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Daily Market Report (17 May 2022)
  • It was another choppy session on Wall Street as US equities ended on a mixed note as sentiments remained jittery on inflationary concerns.
  • The DJI Average gained 27 points while the Nasdaq lost 142 points as the US 10-year yield inched closer towards the 2.9% mark.
  • On the local front, the FBM KLCI closed higher last Friday due to some bargain hunting activities.
  • For today, we reckon the index to remain stuck within a narrow range of between the 1,540- 1,550 band as sentiments are still cautious.
  • Meanwhile, news that Germany may ditch the imports of Russian oil had pushed the Brent crude price to above the US$114/barrel.
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Daily Market Report (13 May 2022)
  • Wall Street closed on a mix note following a volatile session as sentiments remain jittery as traders are worried of more aggressive rate hikes.
  • The DJI Average declined by 104 points while the Nasdaq gained a mere 7 points.
  • Meanwhile, the US 10-year yield was lower at 2.85%.
  • As for the local bourse, the FBM KLCI ended in negative territory attributed to selling by foreign funds during the afternoon session.
  • We believe the local bourse to trend within a consolidation mode for now due to the lack of buying catalysts and heightened volatility thus expect the index to hover between the 1,530-1,550 range today.
  • Meanwhile, crude palm oil eased to below the RM7,000/tonne level tracking the weakness of soya.
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Daily Market Report (12 May 2022)
  • Higher than expected inflation figure for April rattled Wall Street as all 3 major indices declined to a new 52-week low.
  • The DJI Average lost 326 points while the Nasdaq fell by a steeper 373 points despite the US 10-year yield hovering below the 3% mark at around the 2.93%.
  • Back home, the FBM KLCI inched marginally higher following a listless trading day.
  • Nonetheless, we reckon the index may be faced with some headwinds today amid the heighten regional volatility mirroring the weakness in US equities overnight.
  • Therefore, we expect the index to trend within the 1,545-1,560 range today as we believe impact from the latest 25bps hike in OPR may positive for banks.
  • Meanwhile, crude oil prices rebounded with the Brent jumped back to US$108/barrel as the EU may be impacted by the supply squeeze.
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