Market Reports

Daily Market Report (10 May 2024)
Daily Market Report (10 May 2024)
  • Wall Street closed higher amid a weaker job environment that saw the latest jobless claims at its highest level since August last year rekindling hopes that the Federal Reserve may lower interest rates soon.
  • As such, the DJI Average jumped 331 points while the Nasdaq added 43 points as the US 10-year yield eased marginally to 4.459%.
  • Over in Hong Kong, the HSI also displayed a decent performance buoyed by solid China’s trade data and the lifting of home buying restrictions in Hangzhou raising hopes that others will follow suit.
  • Back home, the FBM KLCI ended in negative territory after a strong opening yesterday as sellers maintained their dominance after the recent rally.
  • Nonetheless, we deemed this as a healthy correction and expect the index to reverse its direction anytime soon.
  • Therefore, we believe the benchmark index to trend between the 1,600-1,610 today with interests returning to the Construction and Telco segments.
  • Meanwhile, we are Neutral on BNM’s widely expected move to maintain the OPR at 3% yesterday.
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Daily Market Report (9 May 2024)
Daily Market Report (9 May 2024)
  • Wall Street ended on a mixed note as traders are now converted into value seekers instead of hype investing.
  • Although AI remains the main investing theme, steep valuations may deter interests.
  • Thus, though the DJI Average added 182 points, the Nasdaq slid by 30 points as the US 10-year yield inched slightly higher at 4.50%.
  • In Hong Kong, the HSI declined as consolidation persists following the recent rally and ahead of China’s trade data where many are expecting a recovery.
  • Back home, the FBM KLCI closed flat despite encountering some selling pressure in the afternoon session.
  • Nonetheless, we view that yesterday’s intermittent correction as healthy and may act as a solid foundation for the local bourse’s ongoing uptrend.
  • For today, we expect the index to hover between the 1,600-1,615 as we believe foreign funds will continue to snap up local heavyweights, namely the Banks and Telcos which are still trading at attractive valuations.
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Daily Market Report (8 May 2024)
Daily Market Report (8 May 2024)
  • Wall Street barely maintained its ongoing uptrend as traders are still waiting for more clues as to when the Federal Reserve will adjust interest rates.
  • Meanwhile, some funds are already cashing out looking at cheaper alternatives, namely Asia.
  • As such, the DJI Average gained 32 points while the Nasdaq lost 17 points from late selling as the US 10-year yield eased further to 4.461%.
  • In Hong Kong, despite a strong tourism data during the Labour Day break, profit taking activities saw the HSI closing almost 100 points lower following a decent run-up recently.
  • Back home, the FBM KLCI finally broke the 1,600-barrier underpinned by continuous accumulation in the blue chips by foreign funds.
  • Though we would prefer the ascension to persist, an intermittent correction may occur allowing the market to digest recent solid performance which is deem healthy.
  • Therefore, we believe the index to hover between the 1,600-1,615 range today with the 1,600 as the immediate psychological support.
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Daily Market Report (7 May 2024)
Daily Market Report (7 May 2024)
  • Wall Street maintained its uptrend on hopes that the Federal Reserve will cut rates sooner rather than later.
  • Sentiment was further boosted by Hamas’ acceptance an Egyptian-Qatari cease fire proposal against Israel.
  • As such, the DJI Average gained 177 points while the Nasdaq jumped by 193 points with the US 10-year yield easing further to 4.487%.
  • Over in Hong Kong, the HSI almost tested the 19,000 mark as sentiment was buoyed by strong Chinese travel data coupled with upgrades by Goldman Sachs, UBS and BNP Paribas.
  • Back home, the FBM KLCI closed within touching distance of 1,600 mark and almost a 52-week high as buying in blue chips continues.
  • The benchmark index has had an impressive performance since mid-April, adding 4% as foreign funds returned.
  • Judging the prevailing uptrend, our 2024 target of 1,660 could be easily achievable as the local bourse remains reasonably priced currently at 15x CY24 PE vis-a vis the 16x average.
  • In view of this, we believe funds into the Blue Chips will eventually cascade down to the smaller caps thus expect Round 2 from small cap companies to excel.
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Daily Market Report (6 May 2024)
Daily Market Report (6 May 2024)
  • Wall Street surged as a lower than expected job data reinforces traders’ belief that this may in turn see softer inflationary pressure hence the Federal Reserve rate adjustments finally.
  • As a result, the DJI Average gained 450 points while the Nasdaq jumped by 315 points with the US 10-yeat yield eased further to 4.497%.
  • Over in Hong Kong, the HSI closed on another YTD high buoyed by more commitments from China with positive measures to prop up economic growth.
  • On the home front, the FBM KLCI’s uptrend has been relentless since mid-April as accumulation on blues chips continues by both local institutions and foreign funds.
  • The benchmark index currently hovering at a 52-week high is anticipated to trend higher underpin by reasonable valuations.
  • We believe a decisive break-out from the 1,600 level is required as this has been a tough resistance to topple.
  • For today, we believe the index to trend between the 1,590-1,600 range.
  • Interestingly, the influx of major tech company’s big wigs into Malaysia recently may be a prelude for exciting times to come.
  • Thus, in view of the cumulative FDIs, we reckon the Banks and Construction stocks to be in focus today.
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