Daily Market Report (2 September 2024)
- Wall Street ends the week on a high as the DJIA hits a fresh new high.
- Sentiment was buoyed by the latest personal consumption expenditure (PCE) index that came in within expectations.
- Thus, while the DJIA gained 228 points, the Nasdaq jumped 197 points despite the US 10-year yield inched higher to 3.909%.
- In Hong Kong, the HSI closed higher to almost the 18,000 level or at a 7-week high as bargain hunting activities emerged on EV stocks after the recent sell-down coupled with positive signs from the US economy.
- On the home front, the FBM KLCI surged to almost the 1,680 mark, a level last seen in Jan 2019.
- We were indeed surprised by the strong rebound principally due to accumulation by foreign funds after a minor correction a day before.
- We believe the uptrend to continue and expect the index to hover within the 1,680-1,690 range today with the crucial 1,700 as the ultimate immediate target.
- Recent earnings released suggest that corporate Malaysia is in solid shape particularly the Banks and expect the blue chips to remain as the bastion for the local bourse.
- Next, we hope that daily volume traded will improve to the 6bn shares mark as the small caps are in need of additional injection of liquidity.
