Daily Market Report (21 May 2024)
- It was a mixed day on Wall Street as the DJIA declined following a record breaking run recently.
- Nonetheless, sentiment remains optimistic attributed good economic growth amid prospects of lower interest rates ahead.
- The DJIA eased 197 points while the Nasdaq jumped 109 points to a record high spurred mainly by the surge in Nvidia shares.
- Meanwhile, the US 10-year yield climbed to 4.447%.
- Over in Hong Kong, the HSI’s march towards the 20,000 level seems imminent as traders’ confidence remain intact over China’s aggressive move to ease inventory within the property sector via a slew of easing of restrictions.
- On the home front, the FBM KLCI eased past the 1,620 mark underpinned by persistent accumulation of blue chips.
- We believe such buying to continue as most of the blue chips are still reasonably valued as the broader index currently hovers within the 15x PE which is lower than its historical of 16.0-16.5x.
- Nonetheless, we expect the index to possibly take a breather ahead of Wesak Day holiday tomorrow thus expect it to trend between the 1,620-1,635 range today.
