Market Reports

Daily Market Report - 24 Feb 2025
Daily Market Report - 24 Feb 2025
  • Wall Street slumped as traders weighed on the latest batch of data suggesting weakening US economic growth.
  • Lower consumer sentiment, inflationary pressure and lower home sales have had traders looking at safer assets.
  • Meanwhile, the US 10-year yield eased further to 4.431%.
  • Over in Hong Kong, the HSI flew past the 23,000 mark with ease, to a 3-year high boosted by the Tech rally following the recent engagements between Xi Jinping and the Tech bigwigs.
  • YTD, the HSI has gained 16% while the Hang Seng Tech Index improved by 20%.
  • Back home, the FBM KLCI ended higher above the 1,590 mark as we believe foreign funds are finally back in view of the regional positive performances.
  • As mentioned numerously, we expect a flight of funds out of US equities to Asian ones attributed to better risk/reward ratio.
  • For today, we expect the index to trend within the 1,590-1,600 range. 
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Daily Market Report - 21 Feb 2025
Daily Market Report - 21 Feb 2025
  • Wall Street declined following a lacklustre forecast by retail giant Walmart and that confidence on the retail segment was further eroded from worries about the US economic health.
  • As a result, the US 10-year yield eased to 4.507%.
  • Over in Hong Kong, the HSI continued to slide as investors have turned cautious that recent rally amongst the tech stocks may have been overstretched.
  • Additionally, sentiment was also affected by the hawkish comments from the Federal Reserve on interest rates amid a challenging economic environment.
  • On the home front, the FBM KLCI weakness continued as it ended below the 1,580 level.
  • The benchmark index have had experienced consecutive declines over the past week from the 1,600 mark hence we believe bargain hunting opportunities should appear anytime soon.
  • For today, we expect the index to trend within the 1,575-1,585 range.
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Daily Market Report - 20 Feb 2025
Daily Market Report - 20 Feb 2025
  • Wall Street closed modestly higher as traders shrugged off hawkish statements from the Federal Reserve on inflation and interest rates.
  • In view of the ongoing tariff spree from Trump, the Fed is concern of the subsequent impact on inflation.
  • Meanwhile, Trump may impose 25% tariff on imports of automobiles, pharmaceuticals and semiconductors.
  • Nonetheless, the US 10-year yield eased slightly to 4.535%. In Hong Kong, the HSI is still suffering from some indigestion as it closed marginally lower.
  • This is normal following its astronomical rise of around 15% gain YTD.
  • On the home front, the performance of the FBM KLCI is still disappointing as it ended lower at the 1,580 level.
  • We suspect foreign funds may be realigning their portfolio out of ASEAN and shift to the Hong Kong market for now.
  • Therefore, we expect this downtrend to be temporary as we believe more funds will re-direct their interests out of Wall Street to Asia, hence the spillover effect on the rest of the region.
  • For today, we expect the index to hover within the 1,580-1,590 range.
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Daily Market Report - 19 Feb 2025
Daily Market Report - 19 Feb 2025
  • Wall Street closed on a positive note albeit just, as all 3 major indices experienced late buying support following a rather choppy session.
  • Overall sentiment remains cautious as traders weighed on prevailing trade tension plus inflationary headwinds.
  • Meanwhile, the US 10-year yield edged higher to 4.552%.
  • Over in Hong Kong, the HSI’s bull run continues and briefly breached the 23,000 mark before closing near the 22,980 level or at almost a 5-month high.
  • Sentiment was buoyed by Xi Jinping’s recent meeting with China’s Tech giants indicating solid endorsements by Beijing for the private sector.
  • Back home, the FBMKLCI finally managed to end marginally higher despite signs of foreign selling throughout the session.
  • Nonetheless, we believe local institutions may be accumulating selective stocks ahead of the 4Q2024 earnings season.
  • For today, we expect the index to hover between the 1,580-1,590 range as market undertone remains rather cautious.
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Daily Market Report - 18 Feb 2025
Daily Market Report - 18 Feb 2025
  • Wall Street was closed for President’s Day yesterday and will resume trading today.
  • Over in Hong Kong, the HSI ended flat following a sterling performance of late.
  • YTD the Hong Kong market has jumped 15% spearheaded by the Tech sector predominantly from the DeepSeek effect.
  • For today, the muted performance was more of an opportunity for the market to digest recent gains.
  • However, the situation was different at home as the FBM KLCI surprisingly declined to near the 1,580 level amid persistent foreign selling.
  • As we enter into a fresh earnings period over the next 2 weeks, investors may wait for the results before committing themselves.
  • Meanwhile based on our estimates, we believe earnings growth for the 4Q2024 to be good as we forecast a 16.9% improvement for CY2024.
  • Thus, we reckon yesterday’s lacklustre performance may be an opening for some bargain hunting activities hence expect the index to hover within the 1,580-1,590 range today.
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