Market Reports

Daily Market Report - 21 Feb 2025
Daily Market Report - 21 Feb 2025
  • Wall Street declined following a lacklustre forecast by retail giant Walmart and that confidence on the retail segment was further eroded from worries about the US economic health.
  • As a result, the US 10-year yield eased to 4.507%.
  • Over in Hong Kong, the HSI continued to slide as investors have turned cautious that recent rally amongst the tech stocks may have been overstretched.
  • Additionally, sentiment was also affected by the hawkish comments from the Federal Reserve on interest rates amid a challenging economic environment.
  • On the home front, the FBM KLCI weakness continued as it ended below the 1,580 level.
  • The benchmark index have had experienced consecutive declines over the past week from the 1,600 mark hence we believe bargain hunting opportunities should appear anytime soon.
  • For today, we expect the index to trend within the 1,575-1,585 range.
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Daily Market Report - 20 Feb 2025
Daily Market Report - 20 Feb 2025
  • Wall Street closed modestly higher as traders shrugged off hawkish statements from the Federal Reserve on inflation and interest rates.
  • In view of the ongoing tariff spree from Trump, the Fed is concern of the subsequent impact on inflation.
  • Meanwhile, Trump may impose 25% tariff on imports of automobiles, pharmaceuticals and semiconductors.
  • Nonetheless, the US 10-year yield eased slightly to 4.535%. In Hong Kong, the HSI is still suffering from some indigestion as it closed marginally lower.
  • This is normal following its astronomical rise of around 15% gain YTD.
  • On the home front, the performance of the FBM KLCI is still disappointing as it ended lower at the 1,580 level.
  • We suspect foreign funds may be realigning their portfolio out of ASEAN and shift to the Hong Kong market for now.
  • Therefore, we expect this downtrend to be temporary as we believe more funds will re-direct their interests out of Wall Street to Asia, hence the spillover effect on the rest of the region.
  • For today, we expect the index to hover within the 1,580-1,590 range.
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Daily Market Report - 19 Feb 2025
Daily Market Report - 19 Feb 2025
  • Wall Street closed on a positive note albeit just, as all 3 major indices experienced late buying support following a rather choppy session.
  • Overall sentiment remains cautious as traders weighed on prevailing trade tension plus inflationary headwinds.
  • Meanwhile, the US 10-year yield edged higher to 4.552%.
  • Over in Hong Kong, the HSI’s bull run continues and briefly breached the 23,000 mark before closing near the 22,980 level or at almost a 5-month high.
  • Sentiment was buoyed by Xi Jinping’s recent meeting with China’s Tech giants indicating solid endorsements by Beijing for the private sector.
  • Back home, the FBMKLCI finally managed to end marginally higher despite signs of foreign selling throughout the session.
  • Nonetheless, we believe local institutions may be accumulating selective stocks ahead of the 4Q2024 earnings season.
  • For today, we expect the index to hover between the 1,580-1,590 range as market undertone remains rather cautious.
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Daily Market Report - 18 Feb 2025
Daily Market Report - 18 Feb 2025
  • Wall Street was closed for President’s Day yesterday and will resume trading today.
  • Over in Hong Kong, the HSI ended flat following a sterling performance of late.
  • YTD the Hong Kong market has jumped 15% spearheaded by the Tech sector predominantly from the DeepSeek effect.
  • For today, the muted performance was more of an opportunity for the market to digest recent gains.
  • However, the situation was different at home as the FBM KLCI surprisingly declined to near the 1,580 level amid persistent foreign selling.
  • As we enter into a fresh earnings period over the next 2 weeks, investors may wait for the results before committing themselves.
  • Meanwhile based on our estimates, we believe earnings growth for the 4Q2024 to be good as we forecast a 16.9% improvement for CY2024.
  • Thus, we reckon yesterday’s lacklustre performance may be an opening for some bargain hunting activities hence expect the index to hover within the 1,580-1,590 range today.
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Daily Market Report - 17 Feb 2025
Daily Market Report - 17 Feb 2025
  • Wall Street ended mixed as traders selectively ignored the weaker than expected Retail sales for January.
  • As such, while the Nasdaq closed positively on persistent demand for tech stocks, both the DJIA and S&P500 declined.
  • Meanwhile, the US 10-year yield eased further to 4.478%.
  • Over in Hong Kong, the HSI surged past the 22,000 underscored by improving sentiment over the muted responses between both the US and China on the prevailing trade war.
  • Meanwhile, attention is also centred on the assembly of China’s tech giants in Beijing today.
  • On the home front, the FBM KLCI was flat attributed to last minute buying on blue chips.
  • Though the benchmark index performance has been rather erratic so far, we are convinced that the return of buying in Hong Kong illustrates that Asia is becoming the preferred destination for foreign funds and that ASEAN should benefit in due course.
  • For today, we anticipate the index to trend between the 1,590-1,600 range.
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