Daily Market Report (9 August 2023)
  • Wall Street closed lower following Moody’s downgrade on the US banking sector reigniting concerns of potential crisis within the sector.
  • The DJI Average lost 159 points while the Nasdaq declined by 110 points as the US 10-year yield inched past the 4% mark to 4.028%.
  • In Hong Kong, the HSI slumped 354 points or to a 2-week low on concerns over China’s slowdown after its exports dipped 14.5% in July which was the biggest decline in 3 years while imports fell 12.4% vs the 5.6% estimate.
  • Back home, the FBM KLCI maintained its uptrend to stay above the 1,450 level as foreign buying continue especially on the Banks yesterday.
  • While we believe the index to see more upside going forward, fresh concerns over the US banks may impact sentiment in the immediate term hence expect the index to trend within the 1,445-1,455 range today.
  • We noticed CPO price has weakened sharply over the past week thus may add pressure to the Plantation sector.
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Daily Market Report (8 August 2023)
  • Wall Street rebounded after a week of fluctuations  as sentiment was boosted by strong set of corporate earnings hence yesterday’s bargain hunting activities.
  • The DJI Average jumped by 407 points while the Nasdaq added 85 points as the US 10-year yield inched higher at 4.097%.
  • In Hong Kong, the HSI ended flat amid a choppy session as traders turned into cautious mode reassessing the impact on China’s stimulus measures to reignite the ailing economy.
  • On the home front, the FBM KLCI closed flat despite some profit takings on selected blue chips.
  • Market undertone remained strong as we noticed persistent accumulation on blue chips.
  • As we enter into corporate earnings season for the 2Q, we reckon focus may be shifted to the Banks, Telcos and Utilities as consensus are expecting these to chart decent earnings growth this year.
  • Thus, we anticipate the index to trend within the 1,445-1,455 range today.
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Daily Market Report (7 August 2023)
  • Wall Street finally loses steam following Fitch’s downgrade on the US sovereign rating from AAA to AA+ thus sparking a massive sell-off.
  • As a result, the DJI Average lost 348 points while the Nasdaq declined by 310 points as the US 10-year yield inched higher at 4.09%.
  • Over in Hong Kong, the HSI slumped by almost 500 points on concerns over China’s property sector after July’s home sales came in worse than expected.
  • Sentiment was further eroded as domestic banks were roped in to adjust existing mortgage rate and trim down payment ratios to assist the ailing property sector.
  • On the home front, the FBM KLCI retreated further as sentiment turned cautious attributed to widespread decline amongst the regional markets.
  • Though we reckon market sentiment may have been affected by the US downgrade, we believe this present an excellent opportunity to bargain hunt as judging by the last US rating downgrade in 2011, we noticed the equity markets did not experience any prolonged negative reaction.
  • Therefore, we expect the index to hover within the 1,440-1,450 range today.
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Daily Market Report (4 August 2023)
  • Wall Street closed marginally lower as traders are pondering on the surge in Treasury yields coupled with the job data to be out later today.
  • The recent knee jerk reaction from Fitch’s downgrade seems to have abated as the DJI Average lost 67 points while the Nasdaq declined by 14 points as the US 10-year yield jumped to a YTD high at 4.178%.
  • In Hong Kong, the HSI slipped to below the 20,000 mark again following a downgrade by Morgan Stanley on Chinese companies.
  • Back home, the FBM KLCI ended slightly lower despite some last minute bargain hunting activities to push the index off the day’s low.
  • Regional performance had been lacklustre as sentiment was affected by the Fitch downgrade instigating some knee jerk reactions.
  • Thus, we believe buying activities may return today as foreign fund flows should continue into this region.
  • Therefore, we expect the index to hover within the 1,435-1,445 range today with Banks to be back on the radar.
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Daily Market Report (3 August 2023)
  • Wall Street finally loses steam following Fitch’s downgrade on the US sovereign rating from AAA to AA+ thus sparking a massive sell-off.
  • As a result, the DJI Average lost 348 points while the Nasdaq declined by 310 points as the US 10-year yield inched higher at 4.09%.
  • Over in Hong Kong, the HSI slumped by almost 500 points on concerns over China’s property sector after July’s home sales came in worse than expected.
  • Sentiment was further eroded as domestic banks were roped in to adjust existing mortgage rate and trim down payment ratios to assist the ailing property sector.
  • On the home front, the FBM KLCI retreated further as sentiment turned cautious attributed to widespread decline amongst the regional markets.
  • Though we reckon market sentiment may have been affected by the US downgrade, we believe this present an excellent opportunity to bargain hunt as judging by the last US rating downgrade in 2011, we noticed the equity markets did not experience any prolonged negative reaction.
  • Therefore, we expect the index to hover within the 1,440-1,450 range today.
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