Investor Concerns Drag Major Markets down

Investor Concerns Drag Major Markets down

Key regional markets ended mixed due to investor concerns yesterday, dragging some of them down with late heavy selling and saw all 3 major indices close sharply lower.

Late heavy selling saw all 3 major indices closed sharply lower as traders were concerned over the US economy ahead of May’s inflation data later today.

The DJI Average ended 638 points lower while the Nasdaq declined by 332 points as the US 10-year yield hovers around the 3.05% level.

Key regional markets mixed

The Nikkei 225 was up 0.04% to end at 28,246.53. HSI and SHCOMP erased 0.66% and 0.76% to end at 21,869.05 and 3,238.95 respectively. The STI lost 0.66% to end at 3,204.38.

Wall Street was sold down sharply on Thursday as investor anxiety heightened ahead of data on Friday. The DJIA and S&P500 slipped 1.94% and 2.38% to end at 32,272.79 and 4,017.82 respectively. Nasdaq tumbled 2.75% to end at 11,754.23.

KLCI lower again

Malaysian equities retreated on Thursday mirroring overnight Wall Street performance. The FBM KLCI index lost 0.93% or 14.15 points to end at 1,509.71 with losers led by PCHEM, IHH and SIMEPLT.

Market breadth was negative with 315 gainers against 601 losers. Total volume stood at 2.88bn shares valued at RM2.06bn.

On the home front, the FBM KLCI ended lower again due to a weak regional performance. The benchmark index had erased 60 points over the past week attributed to selling by foreign funds of late.

Though immediate recovery may occur, we reckon bargain hunting activities should emerge if the index tests the 1,500 mark.

“Therefore, we anticipate the index to trend within the 1,500-1,520 range today. Meanwhile, the Brent crude eased marginally but remains above the US$123/barrel as lockdowns returned on some parts of Shanghai,” says Rakuten.