Daily Market Report (24 May 2024)
- Wall Street ended broadly lower on the back of stronger economic data while jobless claims for week ending 18 came in within expectations heightening concerns that the Federal Reserve will not adjust interest rate anytime soon.
- The DJIA slumped 606 points while the Nasdaq lost 65 points as the US 10-year yield inched higher at 4.479%.
- Over in Hong Kong, the HSI declined to below the 19,000 threshold as sentiment turned cautious over the Federal Reserve stance on interest rates coupled with rumours that Alibaba’s may issue USD5bn of convertible bonds which is earnings dilutive.
- On the home front, the FBM KLCI continues to march upwards briefly trending above the 1,630 level as broad-based buying continues.
- Market undertone remains solid as average daily volume stays encouraging at above the 6bn units.
- Though some profit taking activities may occur today emanating from Wall Street weakness, we believe bargain hunting activities to prevail thus expect the index to hover between the 1,620-1,635 range.
