Daily Market Report (11 October 2024)
- Wall Street closed lower as traders reacted negatively towards September’s CPI figure which came in higher than anticipated.
- As a result, many are now concern that another big rate cut In November may not happen. Meanwhile, the US 10-year yield has eased marginally to 4.067%.
- Over in Hong Kong, the HSI rebounded to above the 21,000 level following PBOC’s introduction of a USD70bn financing facility for institutional purchases thus prompting expectations of more easing measures to prop up growth.
- The Hong Kong market will be closed today for Double Ninth Festival. On the home front, the FBM KLCI closed positively but off the day’s high amid bouts of late profit taking activities.
- Nonetheless, news that Public Bank is acquiring LPI Capital at a 25% discount to its pre-suspension price of RM13 via cash bodes well for the bank as the purchase is earnings accretive minus the dilutive impact to shareholders.
- As such, we may see some buying in Public Bank which accounts for more than 8% weighting on the FBM KLCI hence expect the index to hover within the 1,640-1,650 range today.
