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Risk-off sentiment
Tue, 16-Apr-2024 09:04 am
by Research Team • Apex Research

  • Malaysia Market Review. The FBM KLCI closed lower by 0.55%, primarily dragged by negative sentiment stemming from geopolitical tensions in the Middle East over the weekend. This sentiment extended to lower liners, with nearly a thousand stocks ending the day in the red. All sectors closed in red, with the property sector leading the losses at -2.48%.
  • Global Markets Review. Wall Street extended its decline overnight, relinquishing intraday gains, after stronger than expected retail sales data dampened expectations for interest rate cuts. Geopolitical tensions added to the market's concerns with investors brushing off the stronger-than expected corporate earnings from JP Morgan. European market closed slightly higher and Asia market closed mostly red amid escalated geopolitical tensions.
  • Market Outlook. We anticipate the KLCI index to maintain a negative trajectory today as sentiment is expected to drag by heightened geopolitical tensions and surging Treasury yields in the US, prompting a risk-off sentiment. We advise investors to consider accumulating fundamentally sound stocks during this period of weakness, in view of government efforts to stabilize the markets. The Technology sector could experience heavier selling pressure, echoing the losses seen in Nasdaq on Wall Street overnight. However, we remain bullish on commodities-related stocks, which often serve as safe havens during periods of turmoil. Also, gold-related stocks may ride onto the higher gold prices alongside with the escalating geopolitical tension across the Middle East.
Sentiment: Negative
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Market Mover
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USD 4.214533 4.248909
EUR 4.942032 4.952931
CNY 0.589638 0.591023
HKD 0.536766 0.541180
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