Opening Daily Highlight
Mixed
Volatility briefly took control
Thu, 29-Feb-2024 07:59 am
by Research Team • Apex Research

Malaysia Market Review. The FBM KLCI (-0.85%) erased all its previous session gains on quick profit taking in two-third of the key index components. The lower liners extended their decline, while all 13 major sectors were painted in red with the Utilities sector (-2.58%) taking the biggest hit.

Global Markets Review. Wall Street edged lower ahead of the personal consumption expenditure data that may provide guidance over inflation date. Both the European and Asia stockmarkets ended mostly downbeat as sentiment turned cautious following the recent rally, particularly in China and Hong Kong markets.

Market Outlook. Volatility took control yesterday with the key index erasing all its previous session gains after hitting 20 months high. The lower liners also turned downbeat and we reckon downside prevails amid ongoing concerns over the potentially prolonged higher US interest rates. Still, we view the current pullback to be healthy which allows recent gains to be digested before fresh legs to take charge to resume for a more sustainable upward momentum. Global markets will be keeping a close watch onto US personal consumption expenditure data later tonight. We advocate investors to turn onto slightly defensive mode with the REIT sector to be in focus. Also, the peak of quarterly corporate results releases will dictate markets’ direction.

Sentiment: Negative
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Market Mover
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USD 4.210973 4.249411
EUR 4.954495 4.965490
CNY 0.589445 0.590817
HKD 0.536642 0.541158
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