Market Reports

Daily Market Report ( 3 September 2024)
Daily Market Report ( 3 September 2024)
  • Wall Street was closed for Labour Day yesterday, but traders are expecting a volatile session ahead when the market reopens as illustrated by the stagnant stock futures.
  • Meanwhile in Hong Kong, the HSI gave up its weekly gains as selling took centre stage following the release of a dismal manufacturing activities in China coupled with disappointing results from property developers and the banks.
  • Back home, the FBM KLCI closed flat as market is trying to digest Friday’s strong performance.
  • Nonetheless, market’s undertone may have turned cautious as reflected by the decline in daily volume traded as traders were mostly side-lined.
  • Therefore, we expect the index to possibly hover within the 1,680-1,690 range today.
  • Meanwhile, we believe stocks accumulation by foreign funds to persist especially after a rather decent 3Q24 corporate earnings season that may instigate some upgrades in earnings growth for CY2024.
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Daily Market Report (2 September 2024)
Daily Market Report (2 September 2024)
  • Wall Street ends the week on a high as the DJIA hits a fresh new high.
  • Sentiment was buoyed by the latest personal consumption expenditure (PCE) index that came in within expectations.
  • Thus, while the DJIA gained 228 points, the Nasdaq jumped 197 points despite the US 10-year yield inched higher to 3.909%.
  • In Hong Kong, the HSI closed higher to almost the 18,000 level or at a 7-week high as bargain hunting activities emerged on EV stocks after the recent sell-down coupled with positive signs from the US economy.
  • On the home front, the FBM KLCI surged to almost the 1,680 mark, a level last seen in Jan 2019.
  • We were indeed surprised by the strong rebound principally due to accumulation by foreign funds after a minor correction a day before.
  • We believe the uptrend to continue and expect the index to hover within the 1,680-1,690 range today with the crucial 1,700 as the ultimate immediate target.
  • Recent earnings released suggest that corporate Malaysia is in solid shape particularly the Banks and expect the blue chips to remain as the bastion for the local bourse.
  • Next, we hope that daily volume traded will improve to the 6bn shares mark as the small caps are in need of additional injection of liquidity.
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Daily Market Report (30 August 2024)
Daily Market Report (30 August 2024)
  • It was an interesting day on Wall Street as only the DJIA managed to close on a positive note and fresh record high despite all 3 major indices starting yesterday’s session impressively.
  • Thus, though the DJIA added 244 points, the Nasdaq ended the day 40 points lower with the US 10-year yield edging higher at 3.863%.
  • Over in Hong Kong, the HSI closed positively after a jittery start as sentiment improved after Meituan delivered a better than expected results.
  • However, overall confidence on Hong Kong shares remains fragile on anticipation of more downbeat corporate earnings ahead.
  • Back home, the FBM KLCI finally cracked to almost the 1,650 mark as sellers emerged following a week of persistent stock accumulation.
  • We see this intermittent correction as healthy, allowing the market to digest recent buying activities.
  • For today, we expect the index to hover within the 1,650-1,660 range as earnings from corporate Malaysia seems decent so far especially from the big caps which may prompt an upward revision in the overall earnings growth for CY2024.
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Daily Market Report (29 August 2024)
Daily Market Report (29 August 2024)
  • Wall Street closed lower as traders are bracing for the results from Nvidia.
  • As such, the DJIA declined 159 points while the Nasdaq lost 199 points as the US 10-year yield was flat at 3.839%.
  • Nonetheless, despite Nvidia’s earnings beating street’s estimates aftermarket, the stock’s futures price was down by almost 7% at time of writing as many were disappointed by the company’s forecast coupled by the over expectations from traders.
  • Over in Hong Kong, the HSI declined ahead of Nvidia’s results amidst the sustainability of the AI-driven rally.
  • However, the market’s weakness was limited by share buy-back from JD.com and Anta.
  • Back home, the FBM KLCI maintained its uptrend to close above the 1,670 mark, a level last seen in 2019.
  • Despite the impressive performance by the blue chips, we noticed sentiment towards the mid and small caps remained uninspiring as most ended lower.
  • Although daily volume traded improved, it was insufficient to prop up the broader market.
  • Despite the 40 points jump in the benchmark index since last Friday, we continue to stay positive and believe that liquidity will eventually cascade down to the broader market.
  • For today, we expect the index to hover within the 1,670-1,680 range.
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Daily Market Report (28 August 2024)
Daily Market Report (28 August 2024)
  • Wall Street barely closed positively amid a choppy session as traders are waiting for Nvidia’s earnings to be released later today.
  • As a result, the DJIA was up a mere 10 points while the Nasdaq added 29 points with the US 10-year yield ending at a flattish 3.829%.
  • In Hong Kong, the HSI managed to eke out a 76 point gain spurred by travel-related and EV stocks erasing the sharp decline in tech stocks namely Alibaba and Meituan amid the sharp sell-down on Temu’s parent company PDD Holdings.
  • On the home front, the FBM KLCI surged past the 1,650 mark on the back of continuous inflows of foreign funds that surged by RM1.4bn over the last 7 days.
  • We believe accumulation of blue chips to persist although sentiment of the broader market may be somewhat lacklustre due to the lack of retail participation.
  • We reckon the recent influx of IPOs which topped RM2bn raised for the 1H2024 may be one of the main reasons for the low interest in small caps.
  • Therefore, we expect the index to oscillate between the 1,645-1,655 range today as we enter into the fervor of earnings season for the 3Q2024.
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