Daily Market Report (14 June 2024)
- It was another mixed day on Wall Street.
- While both the Nasdaq and S&P 500 continue to chart record highs as sentiment remains very much in tune to recent weakness in May’s inflation data, the DJIA ended lower.
- Despite the Federal Reserve hinting of possibly only one rate adjustment this tear, traders are optimistic that if prevailing CPI data stay subdued, the Fed may adjust rates by more than once this year.
- Meanwhile, the US 10-year yield slid to 4.248% from 4.402% at beginning June.
- Over in Hong Kong, the HSI rebounded to above the 18,000 level amid the US muted inflationary figure coupled with the EU recent imposition of tariff on Chinese EVs which many deemed as manageable and not excessive.
- Back home, the FBM KLCI pared earlier gains to close marginally higher following some late profit taking activities.
- Nonetheless, we believe accumulation of stocks to continue.
- We notice consensus had upgraded earnings growth for 2025 and the benchmark index’s prospect for 2024/25, thus we have our 2024 target at 1,730 premised on 16.5x market PER from 1,660 previously.
- For today, we expect the FBM KLCI to trend between the 1,610-1,620 range.
