Daily Market Report (22 July 2024)
- Wall Street ended the week on a weak note as all 3 major indices slumped amid the rotation into smaller cap stocks.
- Although trading was not affected by the global IT shutdown, the main culprit Crowdstrike tumbled 11.1%.
- As such, the DJIA lost 377 points while the Nasdaq declined by 144 points with the US 10-year yield climbed to 4.242%.
- Over in Hong Kong, the HSI dipped by a massive 360 points as sentiment remained downbeat over the underwhelming China’s economic performance and the lack of details of policy to spur growth.
- Back home, despite the regional turbulence, the FBM KLCI closed on yet another YTD high as buying momentum remains very much intact amid some intermittent profit taking activities.
- However, we noticed daily volume traded had declined significantly to below the 4.5bn shares level on Friday illustrating that market undertone was still cautious.
- Notwithstanding the drag on Wall Street, we believe trading on the local bourse to stay positive as ongoing rotation by foreign funds may see some spillover effect into the region namely Malaysia.
- Thus, we expect the index to trend within the 1,630-1,640 range today.
