Daily Market Report (5 August 2024)
Daily Market Report (5 August 2024)

Daily Market Report (5 August 2024)

Mon, Aug 5, 2024 7:51 AM
  • Wall Street sell-down continues as sentiment was further eroded amid recessionary fears and the weaker than expected job data for July pushing unemployment rate higher to 4.3%.
  • As a result, the DJIA declined by 611 points while the Nasdaq lost 418 points as funds maintained the transition to bonds thus pushing the US 10-year yield to a YTD low at 3.799%.
  • In Hong Kong, the HSI declined to below the 17,000 level following the possible rough landing of the US economy despite of more potential rate cuts from the Federal Reserve going forward.
  • Back home, the FBMKLCI was not spared either as it dipped to just above the 1,610 mark amid a regional bloodbath.
  • We believe such drastic selling was just a knee-jerk reaction as traders may treat this as an excuse to lock in profits.
  • Nonetheless, we reckon overall sentiment may have turned cautious though we anticipate some bargain hunting to resurface albeit tentatively.
  • As such, we see the index to possibly hover within the 1,605-1615 range today.
  • Meanwhile, the good news is that the MYR has strengthened to RM4.50/USD1 or our year-end target.
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