Market Reports

• Temporary reprieve amid the coronavirus as authorities are ramping up their efforts to stabilise the jitters. Overnight, Wall Street staged another impressive rebound to lend a hand solidifying market sentiment.

Therefore, we reckon regional uptrend to continue and will spillover to the local bourse as well. All these are very well to check on the downtrend however in reality we are seeing crude oil as well as CPO continuing with their fall.

Brent is currently hovering at US$54 from above US$60 mark only last month. As for CPO, we are hoping for a rapid rebound from current level as a prolonged dip may see a downgrade on the sector.

• All in all, the situation remains rather fluid hence we advocate investors to remain vigilant. The FBM KLCI is expected to see some resistance at the 1,550 level.

• Sentiment remains jittery as we enter yet another trading day clouded by the virus. Wall Street staged an unconvincing rebound yesterday which should see regional markets to remain mixed today.
• Locally we believe it will be another “yo-yo” day with the psychological support level at the 1,500 mark.
• Investors may even opt to take profit on stocks that had performed rather well year to date if the broader market is to continue with the downtrend.

• Coronavirus and Wuhan has taken the steam out of bull of global markets where stronger earnings season from US markets have taken a back seat for the moment.
• All eyes will be on China’s equity market which has reopened today after an extended break.
• On the local front today, market is expected to be selling mode with FBM KLCI’s support level at 1,500. Longer term investors may take the opportunity to bargain hunt on oversold stocks.  

• Undented by the virus fear, Wall Street closed on a positive note on the back of improved earnings. Nonetheless, we believe this could be short lived as sentiments may eventually be affected by fears of the pandemic.
• We expect regional markets to readjust itself following a sell-off over the last few days and possibly some buying would prevail.
• Locally we expect the selling to ease with the FBM KLCI to test the 1,550 level and maybe it’s time to look at laggard healthcare stocks namely Pharmaniaga, KPJ Healthcare and Caring.

• With the virus still dominating headlines, most investors were sidelined amid a plethora of corporate results on Wall Street.
• It is also interesting to note that a large chunk of funds went into the US 10-year treasury as the yield touched below the 1.60% from around the 1.90% at the start of this year.
• Therefore, we reckon interests on equities to remain low with the FBM KLCI to hover within the 1,550/1,560 range.
• Meanwhile, CPO price staged a rebound to above RM2,700/MT following a sharp decline recently and consensus are having some mixed views of the commodity at the moment.
• We are Neutral on the sector.