Market Reports

Daily Market Report (19 June 2024)
Daily Market Report (19 June 2024)
  • Wall Street closed positively as both the Nasdaq and S&P 500 reached new record highs again amid a weaker than expected retail sales spurring hopes of possible lower interest rates going forward.
  • Buoyed by the usual suspects, the Nasdaq added 5 points while the DJIA gained 57 points while the US 10-year yield eased slightly to 4.219%.
  • Over in Hong Kong, the HSI weakened marginally as sentiment have turned cautious and many are awaiting for new stimulus to prop-up China’s recent sluggish economic data amid the latest trade tension with the EU.
  • On the local front, the FBM KLCI ended in marginally lower, paring earlier gains due to late selling activities.
  • Nonetheless, we noticed daily volume remains decent hovering around the 6bn shares daily hence foresee trading on the local bourse is still healthy.
  • For today, we expect the benchmark index to trend higher hence anticipate the index to hover between the 1,605-1,615 range as Wall Street will be closed for trading today.
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Daily Market Report (18 June 2024)
Daily Market Report (18 June 2024)
  • Wall Street closed higher due mainly to follow through buying last week with the S&P recorded a fresh new high.
  • While traders are waiting for the latest retail sales data today, the DJIA gained 189 points while the Nasdaq jumped 168 points higher as the US 10-year yield inched higher at 4.285%.
  • In Hong Kong, the HSI pared earlier gains as profit taking activities emerged amid a mixed set of economic data from China.
  • As for the FBM KLCI, after a couple of days consolidating, we believe the benchmark index to reverse its direction and expect it to hover between the 1,610-1,620 range today attributed to bargain hunting activities.
  • Again, outlook for corporate Malaysia is improving premised on the broad-based upward revision in earnings growth to 8.2% for 2025 following a respectable 16.1% growth for this year.
  • Meanwhile, crude oil prices rebounded as the Brent crude price trends closer to US$85/barrel underpinned by improving demand outlook.
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Daily Market Report (14 June 2024)
Daily Market Report (14 June 2024)
  • It was another mixed day on Wall Street.
  • While both the Nasdaq and S&P 500 continue to chart record highs as sentiment remains very much in tune to recent weakness in May’s inflation data, the DJIA ended lower.
  • Despite the Federal Reserve hinting of possibly only one rate adjustment this tear, traders are optimistic that if prevailing CPI data stay subdued, the Fed may adjust rates by more than once this year.
  • Meanwhile, the US 10-year yield slid to 4.248% from 4.402% at beginning June.
  • Over in Hong Kong, the HSI rebounded to above the 18,000 level amid the US muted inflationary figure coupled with the EU recent imposition of tariff on Chinese EVs which many deemed as manageable and not excessive.
  • Back home, the FBM KLCI pared earlier gains to close marginally higher following some late profit taking activities.
  • Nonetheless, we believe accumulation of stocks to continue.
  • We notice consensus had upgraded earnings growth for 2025 and the benchmark index’s prospect for 2024/25, thus we have our 2024 target at 1,730 premised on 16.5x market PER from 1,660 previously.
  • For today, we expect the FBM KLCI to trend between the 1,610-1,620 range.
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Daily Market Report (13 June 2024)
Daily Market Report (13 June 2024)
  • It was another confusing day on Wall Street as both the Nasdaq and S&P 500 closed on record highs while the DJIA ended in negative territory.
  • Sentiment was buoyed but May’s lower than expected CPI data but at the same time dampened by the Federal Reserve’s indication of possibly only one cut in rates this year.
  • In tandem with the cooling inflation figure, the Fed kept interest rates unchanged as the US 10-year yield eased to 4.318%.
  • Over in Hong Kong, the HSI declined to below the 18,000 mark as selling gathered momentum following China’s latest inflation data that signals weak demand.
  • Meanwhile, the EU’s imposition of more tariffs on Chinese EVs next month to a tune of 48% would see negative implications for such carmakers on the mainland.
  • Back home, the FBM KLCI ended lower despite a strong opening amid a mixed regional performance.
  • Nonetheless, we believe buyers should emerge today after the broader market resurgence on Wall Street overnight thus expect the benchmark index to hover between the 1,610-1,625 range.
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Daily Market Report (12 June 2024)
Daily Market Report (12 June 2024)
  • Wall Street closed on a mixed note as traders are waiting for the inflation data out later today coupled with the Federal Reserve outlook on interest rates.
  • As a result, the DJIA lost 121 points while the Nasdaq jumped by 151 points largely thanks to Apple that saw share price soar amid optimism of its new AI feature.
  • Meanwhile, the US 10-year yield eased slightly to 4.402%.
  • In Hong Kong, the HSI fell as traders turned cautious on rates in the US after a strong job data last week.
  • There was also a sell-down on EV manufacturers following statements from Türkiye of imposing tariffs on Chinese EVs.
  • Back home, the FBM KLCI failed to maintain its strong opening as late selling saw the index closing lower.
  • Nonetheless, we noticed some muted accumulation on stocks thus expect the index to hover between the 1,605-1,615 range today.
  • If you missed our Rakuinsights yesterday, there are trading opportunities on logistic related players namely KGW, FM Global, Tasco and Harbour Link following a surge in Global Freight rates which have more than doubled YTD.
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