Daily Market Report ( 25 September 2024)
- Wall Street closed positively with all 3 major indices hitting all-time highs despite consumer confidence suffering its biggest 1-month decline.
- As such, the DJIA gained 83 points while the Nasdaq added 100 points as the US 10-year yield was flat at 3.732%.
- Over in Hong Kong, stocks surged following China’s PBOC cut in the Reserve Requirement Ratio (RRR) by 50bps releasing USD142bn into the financial system.
- In addition to this, there are also a slew of incentives for buying shares and cuts in borrowing costs as an effort to boost economic growth and the equity market.
- As a result, the HSI surged past the 19,000 level or a 4-month high.
- Back home, the FBMKLCI closed positively but remains stuck in a consolidation mode.
- As such, we reckon the index needs to break the 1,680 mark decisively to resume its challenge towards the 1,700 mark.
- We see recent strength of the Ringgit may be the main catalyst for the inflow of foreign funds in line with the widening 10-year MGS and 10-year Bond yield spread now at around 50bps.
- As such, we expect the index to hover within the 1,670-1,680 range today.
