Wall Street ended lower after a volatile session as traders remained concern over the US economy following the Federal Reserves’ aggressive rate hike. The DJI Average declined 107 points while the Nasdaq lost 153 points as the US 10-year yield surged past the 3.7% level.
"On the home front, the FBM KLCI closed lower attributed to continued selling from the foreign funds. As sentiment is expected to remain cautious, we reckon the index to trend within a narrow range of 1,435-1,450 today.
"With the steep rising rates in the US, we anticipate the Technology sector to experience some headwinds today as growth may be affected. Nonetheless, some bargain hunting activities may emerge for the Banks and Telcos after consecutive declines," says Rakuten.
FBM KLCI Lower
FBM KLCI continued to trend lower amid the regional selldown on equities after the Fed hiked rate. The benchmark index lost 0.55% or 8.02 points to 1,439.16 with losers led by NESTLE, PPB and HLBANK. Market breadth was mixed with 447 gainers against 372 losers while 424 were unchanged. Total volume stood at 2.17bn shares valued at RM1.68bn.
Key regional markets closed mostly lower yesterday. Nikkei 225 slipped 0.58% to close at 27,153.83 while STI added 0.04% to close at 3,263.07. HSI and SHCOMP lost 1.61% and 0.27% to end at 18,147.95 and 3,108.91 respectively.
Wall Street ended lower yesterday. The DJIA lost 0.35% to close at 30,076.68. S&P500 and Nasdaq slumped 0.84% and 1.37% to end at 3,757.99 and 11,066.81 respectively.