Market Reports

Daily Market Report - 20 Dec 2024
Daily Market Report - 20 Dec 2024
  • Uncertainty rules as Wall Street closed on a mixed note depicting that US equities are entering into a consolidation phase.
  • Sentiment was spooked by the outlook on interest rates which may stay elevated as reflected from the US 10-year yield that ended higher at 4.566%.
  • As for Hong Kong, the HSI declined in tandem with the plunge on Wall Street overnight, underscored by the hawkish statement from the Fed’s slower rate cuts in 2025 comment.
  • As such, the 25bps cut by the Hong Kong Monetary Authority failed to ignite any excitement.
  • On the home front, the FBMKLCI maintained above the 1,600 mark to remain as the only stockmarket within the SEA region to reverse earlier losses.
  • This underpins our belief that the index is looking to end 2024 above the 1,600 level.
  • Anyhow, we still hold the fact that the US debt ceiling and National Debt as the major headwinds on Wall Street that hopefully should divert foreign funds back to Asia/SEA regions.
  • As such, we expect the index to hover within the 1,600-1,610 range today.
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Daily Market Report - 19 Dec 2024
Daily Market Report - 19 Dec 2024
  • Wall Street slumped as traders unloaded their positions on heightening concerns on interest rates, which may stay elevated indefinitely.
  • This came after the Federal Reserve indicated that there will be only 2 rate cuts in 2025 after reducing the overnight rate by 25bps.
  • Meanwhile, the US 10-year yield closed higher at 4.52%.
  • Over in Hong Kong, the HSI finally arrested its recent weakness to close broadly higher on optimism to China’s latest proposal to guide state-owned companies to improve and unlock their values while halving service fees for dividend payouts.
  • Back home, the FBM KLCI ended marginally higher to just below the 1,600 mark amid hints of bargain hunting activities in support of the local bourse.
  • Taking cue from the declines on Wall Street, we expect some knee-jerk reaction from the regional markets but expect foreign funds to seek for safer haven which should re-divert funds back to Asia where valuations are more alluring.
  • As such, we expect the index to hover within the 1,590-1,610 range today.
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Daily Market Report - 18 Dec 2024
Daily Market Report - 18 Dec 2024
  • Wall Street closed broadly lower as traders are now worried that Trump’s as president may not be as positive as initially expected amid the elevated interest rates and heightened uncertainties.
  • In view of the highly anticipated 25bps rate cut anytime soon, the US 10-year yield eased to 4.395%.
  • As for Hong Kong, the HSI declined further as investors remained disillusioned over the lack of details from Beijing’s recent mention of easing measures policy, while waiting for the Fed decision to adjust interest rates soon.
  • On the local front, the FBM KLCI finally relented from the continuous foreign fund selling as it closes below the 1,600 level.
  • Admittedly, it was another dismal day for regional markets, especially those within the SEA region.
  • The recent weakness of the local bourse has rendered valuation to a more alluring level estimated at 14.7x currently based on 2025 numbers.
  • For today, we expect the index to hover within the 1,595-1,605 range.
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Daily Market Report - 17 Dec 2024
Daily Market Report - 17 Dec 2024
  • Wall Street ended mixed again as sentiment remains cautious ahead of the FOMC 2-day meeting starting today.
  • While the DJIA closed negatively, the Nasdaq added 247 points to another record high.
  • Meanwhile, the US 10-year yield stayed elevated at 4.403% illustrating that the market may have priced in the highly anticipated rate cut by the Fed.
  • Over in Hong Kong, the HSI declined to almost a 2-week low as investors remained wary of China’s patchy economic performance following the latest House Price index and retail sales data which both fared badly thus highlighting deflationary pressures again.
  • Back home, the FBM KLCI dipped slightly amid a sea of red regionally as selling from foreign funds persisted.
  • Nonetheless, we noticed there were some buying activities within the local bourse, indicating that 1,600 remains as the immediate support at the moment.
  • Hence, we expect the index to trend between the 1,605-1,615 range today.
Daily Market Report - 16 Dec 2024
Daily Market Report - 16 Dec 2024
  • Wall Street closed mixed as traders were mostly sidelined ahead of the FOMC meeting next week.
  • Though many expect the Fed to cut rates, the US 10-year yield remains stubbornly high at 4.395%.
  • This will place the US National debt currently at USD36.2 trillion in a very interesting position when the suspension of the debt ceiling ends on January 1, 2025.
  • Over in Hong Kong, the HSI slumped to below the 20,000 level as the conclusion of the Chinese economic policy meeting failed to satisfy investors.
  • While waiting for more clarity, China’s bond market rallied with the 10-year yield hitting a record low of 1.773%.
  • Back home, the FBMKLCI rebounded to close near the 1,610 level amid the emergence of buying activities.
  • We believe liquidity within the local bourse is still low but remain hopeful that the index will test 1,630 before 2024 ends.
  • For today, we expect the index to hover within the 1,605-1,615 range.
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