Daily Market Report (6 August 2024)
- Wall Street’s slump continues as selling became more unrelenting with traders opting for “sell first, think later” concept amid recessionary fears in the US.
- As such, the DJIA lost a massive 1,034 points while the Nasdaq declined by 576 points with the US 10-year yield dropping to 3.778% or at a 52-week low.
- Notwithstanding this, the only positive we saw is that all 3 major indices closed off their intra-day lows.
- In Hong Kong, the HSI ended 250 points lower against a regional bloodbath backdrop especially in Japan that dived 12%.
- On the home front, the FBMKLCI declined to a 4-month low to below the 1,540 mark amid a regional bloodbath predominantly due to unloading of Yen carry trades.
- Nonetheless, we remain adamant that the selling was overdone as our market valuation is nowhere near those on Wall Street.
- Over the past two days, our market PER dipped from 15.4x to 14.6x currently, thus presenting an excellent opportunity for some value accumulation.
- For today, we believe selling may be less dramatic as Wall Street futures are all showing a rebound at time of writing hence expect the index to hover within the 1,500-1,550 range today.
