Daily Market Report (13 May 2024)
- Wall Street closed on a mixed note as investors remained torn between weakening economic data and inflationary pressure.
- Nonetheless, sentiment was buoyed by the Federal Reserve stance that there will be no rate hike for now.
- Nonetheless, all eyes will be on April CPI to be out May 15.
- As a result, the DJI Average rose 125 points while the Nasdaq lost 5 points as the US 10-year yield edged higher at 4.50%.
- In Hong Kong, the HSI surged to almost the 19,000 mark or a YTD high aided by renew optimism of the recovering Chinese economy and that Xian became the 2nd city to scrap property purchase restrictions after Hangzhou.
- Sentiment was further boosted from talks that dividend tax may be scrapped on Hong Kong listed shares.
- Back home, the FBM KLCI remains in consolidation mode as the index ended flat at just above the 1,600 level.
- We believe buyers should return after recent bouts of correction thus expect the index to hover between the 1,600-1,610 with a strong upside bias today.
