Market Reports

Daily Market Report - 17 Jan 2025
Daily Market Report - 17 Jan 2025
  • Wall Street closed in negative territory following a choppy session amid the sell-down on mega tech stocks namely Apple, Nvidia and Alphabet.
  • Meanwhile, the muted CPI data reported recently saw the US 10-year yield further easing to 4.613%.
  • Over in Hong Kong, the HSI added more than 200 points to close in on the 20,000 level again as sentiment improves on the Fed rate cut possibility following a tame inflation data for December.
  • On the home front, the FBM KLCI again failed to sustain its strong opening as selling pressure persists.
  • The unrelenting selling predominantly from foreign funds remains high with a net outflow of RM1.45bn since the start of 2025.
  • We suspect the unloading could be attributed to the uncertainty of Trump’s return hence we may see similar pattern over the next few days hence expect the index to hover within the 1,550-1,560 today.
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Daily Market Report - 16 Jan 2025
Daily Market Report - 16 Jan 2025
  • Wall Street rebounded with a vengeance after December’s CPI came in slightly lower than expected thus allowing some breathing space that rate hike may be off the table for now.
  • As a result, the US 10-year yield eased to below the 4.7% level to 4.655%.
  • In Hong Kong, the HSI maintained its uptrend as investors are taking a positive stance ahead of some key economic data from China (economic growth for 4Q24) and the US CPI figure that will shape the outlook for monetary policies.
  • Back home, the FBM KLCI continued to be pressured by foreign selling as it ended just above the 1,560 mark.
  • We suspect foreign funds may be off-loading their position ahead of Trump’s inauguration, thereafter, gauge his move on tariffs.
  • As we moved half-way into January, the index has already lost 5%.
  • Nonetheless, we believe this presents an excellent opportunity to accumulate shares thus expect the index to hover within the 1,565-1,580 range today.
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Daily Market Report - 15 Jan 2025
Daily Market Report - 15 Jan 2025
  • It was another mixed day on Wall Street as the unloading on big tech stocks persisted despite the lower than expected PPI (producer price index) as traders are looking at today’s CPI figure.
  • Meanwhile, the US 10-year yield remains high at 4.794%.
  • Over in Hong Kong, the HSI added almost 350 points to close above the 19,000 mark following reassuring remarks from China’s securities regulator that it will stabilize the market after a wobbly start to 2025.
  • Back home, the FBM KLCI ended in negative territory attributed to late selling activities.
  • The index was trending positively throughout yesterday’s session but succumbed to selling pressure in the final hour.
  • We were surprised by the sudden sell-down and may have been instigated by foreign funds.
  • Nonetheless, we believe a quick rebound is required, hence anticipate the index to hover between the 1,575-1,585 range today.
  • At current level, market valuations are at a cheap 14.5x vs historical average of 16.5x.
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Daily Market Report - 14 Jan 2025
Daily Market Report - 14 Jan 2025
  • Wall Street closed mixed as traders are shifting their holdings out of tech into other sectors, namely power with an eye on tomorrow’s CPI figure.
  • Meanwhile, the US 10-year yield edged higher at 4.79%.
  • On a wider perspective Asian markets tanked as prospects of rate cuts in the US diminished following a robust job data.
  • As a result, the HSI lost 190 points to end below the 19,000 level or a 4-month low.
  • On the home front, the FBM KLCI weakened to below the 1,590 mark in line with the regional sell-off.
  • In view of the recent sell-down, investors are re-setting their investment strategy and stay side-lined ahead of “Tariff Trump” return hence we believe this is a good opportunity to bargain hunt.
  • We opined that Trump 2.0 may not be assertive cost this risk a total isolation of the US from the rest of the world. For today, we anticipate the index to hover within the 1,580- 1,595 range
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Daily Market Report - 13 Jan 2025
Daily Market Report - 13 Jan 2025
  • Wall Street finished lower as positive jobs data renewed inflation fears, strengthening the case for a cautious Federal Reserve approach to cutting interest rates this year.
  • Three key major indices ended negatively with the DJIA and Nasdaq losing 1.63% respectively while S&P500 dived 1.54%.
  • In Asia, key indices ended lower after The Treasury selloff intensified on expectations that the Federal Reserve will not cut interest rates again before July amid lingering inflation risks.
  • Over to HK, the HSI fell 0.92% as investors remain cautious about the strength of China’s recovery, weighed down by sluggish consumption and escalating US-China trade tensions.
  • As for the local bourse, the FBM KLCI ended on a positive note, supported by bargain hunting in banking and telco stocks.
  • However, our outlook remains cautious, despite gains in the benchmark index, as external factors continue to weigh on investor sentiment.
  • On the other hand, cheap valuations may attract investors to buy on dip, hence we anticipate the benchmark index to trend within the range of 1,600-1,610 for today.
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