Daily Market Report - 5 March 2025
- Wall Street maintained its slump on concerns that prevailing trade war may transform into an all-out trade war as Trump has threatened more tariffs on Canada.
- Meanwhile, the US 10-year yield crept up to 4.242% as Trump’s tariffs may be inflationary.
- Over in Hong Kong, the HSI declined amid growing fears that Trump’s tariffs are taking effects today.
- As the countries affected are imposing retaliatory tariffs, many are concerned that this will escalate the prevailing global trade war to greater heights.
- Back home, the FBM KLCI fared even worse as investors now at risk-off mode, unloaded their holdings in view of increasing volatility.
- Though we are not advocating any aggressive bargain hunting as yet, we see the current scenario as an excellent opportunity for some stock pickings, especially the blue chips and defensive ones with decent dividend yields.
- For today, we expect the index to hover within the 1,550-1,565 range with the hope that foreign funds will look at Asia as the preferred destination soon.
