Daily Market Report (3 May 2024)
- Wall Street closed higher as US Fed Chair Jerome Powell played down the likelihood of an interest-rate hike, bringing relief to investors.
- Furthermore, the US central bank revealed its strategy to slow down the pace of its balance sheet drawdown starting on June 1, aiming to prevent any excessive strain on financial markets.
- As a result, the Dow finished 0.85% higher, ending above the 38,800 mark, while the tech-heavy Nasdaq jumped 1.51%, closing in on the strong resistance level of 16,000.
- In Asia, key indices finished mixed due to profit-taking in some bourses, while in Hong Kong, stocks finished sharply higher with strong buying in EV and real estate sectors.
- Consequently, the Hang Seng Index jumped 2.5% to finish at 18,000 points.
- On the domestic front, the FBM KLCI closed higher as investors seized the opportunity to bottom fish following the sell-off on Tuesday.
- We believe the outlook for local equities remains positive, thanks to the continuous inflow of foreign funds into the region.
- Hence, we anticipate the FBM KLCI to trend within the range of 1,580-1,590 for today.
