Daily Market Report (17 May 2024)
- Wall Street ended lower despite the DJIA briefly touching the magical 40,000 mark as profit taking activities emerged following the recent uptrend of US stocks.
- The DJIA lost 39 points while the Nasdaq declined by 44 points as the US 10-year yield edged marginally higher at 4.377%.
- Over in Hong Kong, the HSI jumped in excess of 300 points edging closer to the 20,000 level on optimism over recent easing policy on China’s property sector coupled with bets that the Federal Reserve will cut rates this year.
- Sentiment was further buoyed by speculation the tax on dividend may be abolished for Hong Kong stocks.
- The HSI has gained almost 20% over the past month.
- Back home, the FBMKLCI maintained its climb to close at a YTD high and we believe there is still more room for upside.
- We also noticed that daily volume has been improving and this is a positive sign for the smaller caps which have yet to excel in a broader sense.
- For today, we expect the index to hover between the 1,605-1,620 range underpinned by higher liquidity.
