Daily Market Report (10 February 2023)
  • Wall Street ended lower after a strong opening as concerns emerged over the Federal Reserves’ rate adjustments may need to be higher than what the market expected.
  • As such, the DJI Average declined 249 points while the Nasdaq lost 121 points with the US 10-year yield trended higher at 3.66%.
  • In Hong Kong, the HSI reversed recent downtrend to close 341 points higher as the focus on tech stocks continued buoyed by the ChatGPT concept coupled with the positive effects from China’s re-opening.
  • Back home, the selling on blue chips persisted particularly on the Telcos and Energy related stocks.
  • The benchmark index declined for the 4th consecutive day as sentiment remains jittery due to the unrelenting selling by foreign funds as the highly anticipated bargain hunting did not materialize.
  • We reckon the market could be waiting of the re-tabling of Budget 2023 on the 24th this month before committing.
  • Therefore, we reckon the index will continue to trend within a narrow range of 1,460-1,470 today.
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Daily Market Report (9 February 2023)
  • Wall Street tumbled after a choppy session as traders digested remarks from the Federal Reserves that interest rates may need to stay high to fight inflation.
  • As a result, the DJI Average lost 208 points while the Nasdaq declined by203 points as the US 10-year yield eased to 3.61%.
  • Over in Hong Kong, the HSI closed 15 points lower amid some mild profit taking activities but tech related stocks experienced some strong selling on concerns of earnings and interest rate outlook.
  • On the home front, the FBM KLCI failed to maintain its strong opening as it dipped to the 1,470 level amid the continued sell-down on the Banks amid reports of potential hike in the SRR (statutory reserve requirement).
  • Despite the prevailing weak market sentiment, we reckon blue chips are ripe for accumulation as we enter into the corporate earnings season where consensus remain confident that both the Banking and Telco sectors to perform strongly for 2022.
  • For today, we expect the index to hover within the 1,470-1,480 range.
  • Meanwhile, crude oil prices continued with its uptrend momentum as the Brent crude ended at above the US$85/barrel.
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Daily Market Report (8 February 2023)
  • Wall Street closed on a strong note as traders welcomed Federal Reserves chairman statement of disinflation along with less aggressive interest rate adjustments.
  • As such, the DJI Average gained 266 points while the Nasdaq jumped by 226 points with the US 10-year yield ended higher to 3.68%.
  • In Hong Kong, the HSI added 76 points on bargain hunting activities from mainland Chinese funds following recent downtrend that saw the index declined by almost 4% over the past few days.
  • Back home, the FBM KLCI played catch-down as selling on the blue chips gathered momentum as the index closed broadly lower to below the 1,480 level.
  • Nonetheless, we reckon bargain hunting activities should emerge anytime soon as the index is currently hovering at a 1-month low.
  • Therefore, we reckon the index to possibly trend between the 1,480-1,490 range today with focus on the Banks which took a massive hit yesterday and Energy stocks buoyed by rebound in crude oil prices with the Brent crude hitting above US$84/barrel.
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Daily Market Report (7 February 2023)
  • Wall Street closed lower as traders became wary of rising bond yield amid some profit taking activities.
  • The DJI Average lost 36 points while the Nasdaq erased 120 points as the US 10-year yield edged higher to above 3.64%.
  • Over in Hong Kong, the HSI continued with its correction as it declined by 438 points on a weak corporate earnings outlook.
  • On the home front, the FBM KLCI ended flat as sentiment remained cautious.
  • However, we reckon bargain hunting may emerge anytime soon as the index was stuck within a consolidation phase over the past 3 weeks.
  • Therefore, we expect some accumulation on the Telcos and Utilities stocks to emerge hence expect the index to trend between the 1,490-1,500 range today.
  • Meanwhile, better demand had pushed crude oil prices higher to almost US$81/barrel.
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Daily Market Report (3 February 2023)
  • Wall Street closed mixed amid easing inflationary concerns and a more resilient labour market ensuring a soft landing scenario for the US economy.
  • Though the DJI Average lost 39 points, the Nasdaq however jumped by 384 points with the US 10-year yield eased marginally to 3.4%.
  • Over in Hong Kong, the HSI slipped 114 points after a strong opening as profit taking activities emerged erasing earlier gains.
  • Nonetheless market undertone remains strong taking cue from the Federal Reserves’ less aggressive rate hike.
  • Back home, the FBM KLCI ended on a positive note but below the 1,490 level as trading on the blues remains subdued.
  • As we enter into corporate results season, we reckon most of the Big Caps to show decent earnings growth for 2022 particularly the Banks, Energy and Consumer sectors.
  • For today, we expect the index to possibly trend between the 1,490-1,500 range.
  • Meanwhile, we notice that consensus had changed their stance on the domestic interest rate scenario as most anticipate BNM to maintain the OPR indefinitely which is good news to equities.
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