Market Reports

Daily Market Report - 3 June 2025
Daily Market Report - 3 June 2025
  • Wall Street closed on a positive note as traders largely ignored the heightening trade tension between China and the US as both countries are accusing each other of violating the temporary 90-day agreement.
  • Meanwhile, the US 10-year yield edged higher at 4.442%.
  • Over in Hong Kong, the HSI dropped but off the day’s low as sentiment was weighed down by the US/China trade tension which flared up again.
  • Sentiment was further dampened by the disappointing China’s new home sales which declined 8.7% in April though better than the 11.4% drop in March.
  • Back home, the FBM KLCI dipped further last Friday to below the 1,510 level as selling from foreign funds continues.
  • We noticed there were efforts to support the index but was unsuccessful.
  • Notwithstanding this, we would advocate investors to accumulate on the blue chips namely the banks and telcos if and when the index dips below the 1,500 mark.
  • For today, we expect the benchmark index to hover within the 1,500-1,510 range.
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Daily Market Report - 30 May 2025
Daily Market Report - 30 May 2025
  • Wall Street ended positively but only just as uncertainty remains following Trump’s success in reinstating the tariff by the appeals court and may go all the way to the Supreme Court to pause the federal court original ruling.
  • Amid the on and off tariff confusion, the US 10-year yield eased to 4.426%.
  • Over in Hong Kong, the HSI jumped to almost the 23,600 mark after the US court blocked Trump’s sweeping reciprocal tariff, boosting hopes that the ongoing trade tension will ease.
  • On the home front, the FBM KLCI weakened to below the 1,520 level as the sell-down by foreign funds continue.
  • For this week alone, we noticed foreign outflows have exceeded RM330m and counting.
  • Though fundamentals remain intact, we suspect the recent sell-down may again be attributed to the flight of funds back to the Hong Kong market.
  • For today, we expect bargain hunting activities to emerge if and when the index ease closer to the 1,500 mark thus anticipate it to trend between the 1,510-1,525 range.
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Daily Market Report - 29 May 2025
Daily Market Report - 29 May 2025
  • Wall Street closed lower following reports that Trump has ordered US software firms to stop selling their services to Chinese firms.
  • After market, Nvidia reported earnings that exceeded consensus forecast rejuvenating market optimism thus resulting in US futures all trending higher now.
  • Meanwhile, the US 10-year yield climbed higher to 4.475%.
  • As for Hong Kong, the HSI slipped as traders are getting worried of the ongoing trade tension especially when the current 3-month pause expires in July.
  • Meanwhile, the weak sentiment was exacerbated by a disappointing set of earnings from PDD Holdings due to hefty discounts and the fact that its peers may be faced with similar predicaments in the near term.
  • Back home, the FBM KLCI continues to decline despite a strong opening as market undertone remains highly fragile.
  • Trading on the local bourse was lackluster as illustrated by the low daily volume of 2.5bn shares yesterday.
  • As such, we expect the ongoing consolidation to persist in the absence of any catalysts hence expect the index to hover within the 1,520-1,530 range today.
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Daily Market Report - 28 May 2025
Daily Market Report - 28 May 2025
  • Wall Street rallied as Trump’s tariff threat on the EU was pushed back.
  • Though uncertainties remain, traders are confident that some sort of deal may be agreed.
  • Meanwhile, the US consumer confidence for May came in higher than expected with the US 10-year yield easing to 4.446%.
  • Over in Hong Kong, the HSI reversed earlier losses to close on a positive note after a government report showed that earnings for Chinese companies accelerated, signalling economic resilience amid the ongoing trade tension with the US.
  • Sentiment was further boosted by Meituan’s profits which beat consensus estimates.
  • However, the same cannot be said for the FBM KLCI as the index continues to slide to end below the crucial 1,530 level amid a lacklustre session.
  • Again, we suspect foreign funds may be unloading within the region and jump over to the Hong Kong market.
  • As for the corporate earnings so far, we believe all is well for corporate Malaysia.
  • For today, we are hoping for an immediate rebound above the 1,530 mark thus expect the index to hover within the 1,525-1,540 range.
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Daily Market Report - 27 May 2025
Daily Market Report - 27 May 2025
  • Wall Street was closed for Memorial Day and will resume trading today.
  • Nonetheless, index futures are trending higher with the DJIA adding more than 400 points as Trump said he would delay the 50% tariff on the EU.
  • As for Hong Kong equities, the HSI tumbled on concerns of China’s economic health amid the tariff uncertainty once the 90-day pause expires.
  • Meanwhile, traders are also worried that a prolonged price war amongst the EVs players to clear inventory will see extended margin compression.
  • Back home, the FBM KLCI closed marginally lower as we suspect foreign selling may still be prevalent.
  • These short term trades by foreign funds would certainly lengthen the consolidation of the benchmark index.
  • For today, we expect the index to trend between the 1,535- 1545 range.
  • Meanwhile, we noticed that the MYR has strengthened over the past week from RM4.30 to RM4.22 vs the USD.
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