Daily Market Reports Issued By Rakuten Trade Research : Page 2

Wall Street closed on a mixed note as the post-election rally lost steam while October’s CPI came in at 2.6% that is in line with consensus expectations.
Meanwhile, the US 10- year yield ended higher at 4.451% despite more rate cut next month.
Over in Hong Kong, the HSI continued to weaken as traders are losing patience and confidence from China’s recent below par stimulus package.
In addition, traders are also concern of Trump’s backlash when he comes into office in 2025.
On the home front, the FBM KLCI finally ended above the 1,610 mark attributed to late buying activities.
Based on current level, the market is hovering at CY2024 PER of 15.0x or 13.8x premised on CY2025 earnings.
Therefore, we believe the local bourse to be reasonably valued and expect buyers to emerge anytime soon.
As such, we expect the index to trend within the 1,610-1,620 range today.

Wall Street closed lower as the market took a breather as it is encountering some indigestion following a record breaking run.
Meanwhile, we noticed that the US 10-year yield edged higher at 4.429%.
In Hong Kong, the HSI slumped to below the 20,000 mark as traders are largely unconvinced of the latest round of Chinese stimulus measures.
The sell-down was broad based with EV producers bearing the brunt of the declines.
On the home front, the FBMKLCI ended the day marginally lower as selling from foreign funds remained.
Though we expected a swift rebound from the index, it did not happen as investors were mostly sidelined.
Nonetheless, we are hopeful that the recent surge in CPO price will attract some buying interest in plantation stocks.
For today, we anticipate the index to hover within 1,610-1,620 range.

Wall Street closed firmer with the DJIA surging to another record high as the post-election euphoria continues.
Meanwhile, the US 10-year yield eased to 4.306%.
Over in Hong Kong, the HSI slumped 300 points as traders were disappointed on the stimulus package totalling USD835bn announced last Friday.
Hence, the sell-down on Property and Tech related stocks on the back of more tariffs on China’s exports going forward.
Back home, the FBM KLCI declined to below the 1,610 level amid selling across the board.
We believe foreign funds were the main culprits as countries within the ASEAN region were not spared either.
Looking ahead, we expect a swift rebound to happen thus anticipate the index to trend within the 1,610-1,620 range today.
Interestingly, crude palm oil price continues to chart YTD high as the futures is currently hovering at RM5,200/tonne.

Wall Street closed the week on a strong note, with the Dow hitting a record high of 44,000 on Friday as stocks stayed firmly bullish.
The S&P 500 and Nasdaq also rose 0.4% and 1%, respectively, with all major indexes reaching record closing highs and posting weekly gains of around 5%.
The S&P 500 and Dow had their best weeks since last November.
Trump is committed to cutting red tape in industries such as housing and energy.
He also plans to extend the Tax Cuts and Jobs Act of 2017, expiring in 2025, push for a corporate tax rate reduction from 21% to 15%, and introduce an "efficiency committee" to curb government waste.
In Hong Kong, the HSI closed lower due to profit-taking, with investors remaining cautious ahead of anticipated economic measures from Beijing.
The top legislative body in China wrapped up its meeting last Friday.
Last month, Beijing introduced several fiscal and monetary measures to support the economy, though unclear details on their scale and timeline have left markets uncertain.
As a result, the HSI fell above 1%.
The FBM KLCI closed slightly down amid mixed regional markets, though the outlook for local equities remains positive, with Malaysia’s economy supported by strong consumer demand, sector recovery, and government resilience measures.
Structural reforms are expected to lift corporate earnings. Plantation stocks may see continued short-term interest as CPO futures surpassed RM5,000/tonne.
We expect the benchmark index to trend within 1,620-1,630 today.

Wall Street ended higher after the Federal Reserve announced a 25 basis-point rate cut, continuing a rally sparked by Donald Trump's return as U.S. president.
The Dow closed flat, while the S&P 500 and Nasdaq rose 0.74% and 1.51%, respectively.
At the same time, Fed Chair Jerome Powell expressed confidence in a soft landing for the economy.
Key regional indices finished mostly higher, tracking U.S. market strength, as investors looked ahead to a possible second Trump term and an expected Fed rate cut.
China and HK’s stocks surged on optimism around potential new stimulus from Beijing.
On the domestic front, the FBM KLCI closed marginally lower due to profit-taking activities following several days of uptrend.
Nonetheless, the recent rally in the FBM KLCI indicates strong buying interest, signalling a promising short-term rebound opportunity.
Malaysia's promising GDP growth forecast, strategic investments, and strengthened ties with global economies could positively influence the stock market in the short to medium term.
Sectors like services, manufacturing, and ICT may see increased investor interest, while fiscal stability and targeted subsidies could bolster overall market confidence and drive broader gains.
As such we anticipate the FBM KLCI to trend within the range of 1,620- 1,640 for today.

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