Daily Market Report (6 May 2024)
- Wall Street surged as a lower than expected job data reinforces traders’ belief that this may in turn see softer inflationary pressure hence the Federal Reserve rate adjustments finally.
- As a result, the DJI Average gained 450 points while the Nasdaq jumped by 315 points with the US 10-yeat yield eased further to 4.497%.
- Over in Hong Kong, the HSI closed on another YTD high buoyed by more commitments from China with positive measures to prop up economic growth.
- On the home front, the FBM KLCI’s uptrend has been relentless since mid-April as accumulation on blues chips continues by both local institutions and foreign funds.
- The benchmark index currently hovering at a 52-week high is anticipated to trend higher underpin by reasonable valuations.
- We believe a decisive break-out from the 1,600 level is required as this has been a tough resistance to topple.
- For today, we believe the index to trend between the 1,590-1,600 range.
- Interestingly, the influx of major tech company’s big wigs into Malaysia recently may be a prelude for exciting times to come.
- Thus, in view of the cumulative FDIs, we reckon the Banks and Construction stocks to be in focus today.
