Stock Market: Bargain Hunting Activities Anytime Soon
We reckon prevailing weak sentiment may see investors sidelined," says Rakuten Trade - Rakuten Trade
The FBM KLCI dipped to a YTD low at just above the 1,430 mark. Though the local bourse may experience some bargain hunting activities anytime soon as it is now at an oversold position.
"We reckon prevailing weak sentiment may see investors sidelined," says Rakuten Trade.
"As such, we anticipate the index to trend within the 1,430-1,440 range today. The only saving grace was that wage increase in the US has been lower than expected thus traders expect the Feds to be less aggressive,"
Foreign Stock Markets
Wall Street declined further as traders were spooked by the closure of Silicon Valley Bank following losses in its bond portfolio plus several others that are crypto-focused reigniting worries of the global financial crisis in 2008 thus sparking a flight of funds to safety particularly government bonds pushing the US 10-year yield down to 3.7%.
As a result, the DJI Average lost 345 points while the Nasdaq tumbled by almost 200 points. In Hong Kong, the HSI experienced another steep decline as it closed to a YTD low at around the 19,300 level as earnings woes from JD.com and AIA clouded earnings outlook.
As such, investors are concerned that recent run-up may not be supported by fundamentals.