Daily Market Report - 10 Jan 2025
- Wall Street was closed in recognition of a National Day of Mourning for the late President Jimmy Carter.
- In Asia, markets closed in the red, pressured by rising expectations of a slower pace of US interest rate cuts this year, while soft inflation data from China further fuelled worries about slowing economic growth.
- The HSI dipped 0.2% as trade tariffs under Trump pose significant challenges to the Chinese economy, but Beijing is expected to counterbalance these with enhanced stimulus efforts.
- On the local front, the FBM KLCI continued its downward trend, ending slightly above the critical 1,600 psychological support level.
- The recent sell-off offers an attractive opportunity for investors to buy, with the benchmark index trading at 15x PER, significantly below its historical average of 18x.
- Hence, we believe bargain hunting may emerge and anticipate the FBM KLCI to trend within the range of 1,600- 1,610 for today.
