Daily Market Report (7 Nov 2019)
- Outlook for equities seems like is getting a reprieve over a potential positive outcome from the US/China Trade talk coupled with interest rates staying put during the course of 2019.
- However, one must be wary of Wall Street’s recent record-breaking performances as prevailing high valuations now may now be a major impediment for further upside and becoming more susceptible to a slightest of negative news flow.
- Therefore, caution may still rule the day and we envisage further uptrend to be rather limited. Locally, the outlook is a tad better from the strengthening of regional currencies especially the Chinese Renminbi now at below the 7.00 mark against the USD.
- Following yesterday’s mild correction, we envisage the FBM KLCI to resume with its uptrend and see 1,610 as the immediate resistance level. We continue to look favourably at some of the Banking stocks and construction counters.
