Market Reports

Daily Market Report (27 May 2024)
Daily Market Report (27 May 2024)
  • Wall Street closed positively as the AI frenzy continues spearheaded by Nvidia.
  • This is despite deteriorating expectations that the Federal Reserve will lower interest rates soon.
  • As such, the DJIA added 4 points while the Nasdaq surged by 185 points to end on a record high as the US 10-year yield eased to 4.467%.
  • In Hong Kong, the HSI declined further as outlook on lower US interest rates wanes coupled with the absence of earnings surprises.
  • The HSI lost almost 1,000 points over the last 5 days.
  • Back home, the FBM KLCI ended the week negatively at just above the 1,620 threshold seemingly a strong support level as selling continues amid a weak regional performance.
  • Nonetheless, we believe some bargain hunting activities to take place today spurred by decent corporate earnings reported thus far.
  • We noticed except for the Planters, most sectors had reported an encouraging set of earnings for 1Q24.
  • Therefore, we expect the index to hover between the 1,615-1,625 range today.
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Daily Market Report (24 May 2024)
Daily Market Report (24 May 2024)
  • Wall Street ended broadly lower on the back of stronger economic data while jobless claims for week ending 18 came in within expectations heightening concerns that the Federal Reserve will not adjust interest rate anytime soon.
  • The DJIA slumped 606 points while the Nasdaq lost 65 points as the US 10-year yield inched higher at 4.479%.
  • Over in Hong Kong, the HSI declined to below the 19,000 threshold as sentiment turned cautious over the Federal Reserve stance on interest rates coupled with rumours that Alibaba’s may issue USD5bn of convertible bonds which is earnings dilutive.
  • On the home front, the FBM KLCI continues to march upwards briefly trending above the 1,630 level as broad-based buying continues.
  • Market undertone remains solid as average daily volume stays encouraging at above the 6bn units.
  • Though some profit taking activities may occur today emanating from Wall Street weakness, we believe bargain hunting activities to prevail thus expect the index to hover between the 1,620-1,635 range.
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Daily Market Report (23 May 2024)
Daily Market Report (23 May 2024)
  • Wall Street retreated as the latest minutes from the Federal Reserve indicated persistent high inflation with no cuts in rates anytime soon.
  • As a result, the DJIA lost 202 points while the Nasdaq declined 32 points as the US 10-year yield eased marginally to 4.426%.
  • In Hong Kong, the HSI took a breather to close marginally lower as sentiment turned cautious ahead of some big tech corporate earnings namely Meituan and Lenovo.
  • Back home, the FBM KLCI also retraced but maintained above the crucial 1,620 level ahead of Wesak Day break.
  • Daily volume was still decent at around 5.8bn units and if this continues to improve, we are confident to see heightening participation especially from the retail segment.
  • In view of the robust earnings report from Nvidia after market as reflected from the positive reaction in Nasdaq futures, we believe sentiment to stay resilient and expect buying activities within the SEA region to continue thus expect the benchmark index to hover between the 1,620-1,635 range today.
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Daily Market Report (21 May 2024)
Daily Market Report (21 May 2024)
  • It was a mixed day on Wall Street as the DJIA declined following a record breaking run recently.
  • Nonetheless, sentiment remains optimistic attributed good economic growth amid prospects of lower interest rates ahead.
  • The DJIA eased 197 points while the Nasdaq jumped 109 points to a record high spurred mainly by the surge in Nvidia shares.
  • Meanwhile, the US 10-year yield climbed to 4.447%.
  • Over in Hong Kong, the HSI’s march towards the 20,000 level seems imminent as traders’ confidence remain intact over China’s aggressive move to ease inventory within the property sector via a slew of easing of restrictions.
  • On the home front, the FBM KLCI eased past the 1,620 mark underpinned by persistent accumulation of blue chips.
  • We believe such buying to continue as most of the blue chips are still reasonably valued as the broader index currently hovers within the 15x PE which is lower than its historical of 16.0-16.5x.
  • Nonetheless, we expect the index to possibly take a breather ahead of Wesak Day holiday tomorrow thus expect it to trend between the 1,620-1,635 range today.
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Daily Market Report (20 May 2024)
Daily Market Report (20 May 2024)
  • Wall Street closed on a mixed note amid a perceived strong US economic growth and decelerating inflation.
  • As a result, the DJIA ended on a record high above the 40,000 mark while the Nasdaq lost 12 points as the US 10-year yield edged higher at 4.422%.
  • In Hong Kong, the HSI ended on another YTD high and closing in on the magical 20,000 anytime soon, propel by solid corporate earnings and accommodative policies from China.
  • Back home, the FBM KLCI maintained above the crucial 1,600 level despite some intermittent consolidations along the way.
  • We see such performance as highly promising, especially daily volume is also on the rise.
  • Though prevailing interests may be on the big-caps, we believe the liquidity will eventually cascade down to the smaller-caps thus we see prevailing conditions as a perfect mixture for a meaningful “Bull-Run” for the local bourse.
  • For today, we expect the index to hover between the 1,615-1,625 range.
  • Meanwhile, it is worthwhile to note that our MYR is quietly climbing against the greenback now hovering below the RM4.70 mark from RM4.80 last month.
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