Opening Daily Highlight
Local
Dovish interest rate outlook
Thu, 16-May-2024 07:35 am
by Research Team • Apex Research

• Malaysia Market Review. The FBM KLCI index ended slightly lower, down by -0.17%, in line with the regional performance. Similarly, lower liners also closed lower as mild profit-taking activities emerged. The Healthcare sector surged (+9.64%), driven by a rally in glove counters following the US imposition of higher tariffs on Chinese gloves imports. The Technology sector (+1.12%) advanced, benefiting from the expected supply chain shift. 

• Global Markets Review. US stock markets jumped, with all three main indices hitting record highs, after the CPI data met expectations, bolstering expectations for interest rate cut as early as September 2024 by the Federal Reserve. Similarly, European markets ended higher, while Asian stock markets were mixed ahead of the US CPI release. 

• Market Outlook. We expect the positive sentiment to spill over from the US market into the local bourse today, after the release of US inflation data eased concerns. Yesterday’s rally in the glove sector is likely to influence lower liner stocks as well. Nevertheless, we raise the concern that Prime Minister DSAI's meeting with a Hamas leader may cause anxiety from the attention from Western countries. Sector-wise, we anticipate the momentum in glove counters to continue, though it may be weaker. We remain bullish on companies benefiting from global supply chain diversification amid the intensifying trade war. Additionally, the overnight rise in gold prices may generate some buying interest in the gold-related stocks.

Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.170987 4.204276
EUR 4.872100 4.877133
CNY 0.589575 0.590185
HKD 0.537072 0.540837
SGD 3.222926 3.245616