Source: Hong Leong Investment Bank Research
From: HLeBroking EM Hub
KLCI: 1,771.01 (+3.84 pts)
DOW: 21,012.42 (+74.51 pts)
MSCI ASIA Pac (MXAP): 151.70 (-0.16 pts)
FCPO: RM2,581 / MT (-36)
BRENT: US$53.96 / bbl (-0.19)
USD: 4.293 (-0.001 pts)
SGD: 3.091 (-0.006 pts)
EUR: 4.802 (-0.029 pts)
GBP: 5.578 (+0.000 pts)
US: 10-yr yield (-0.03 to 2.25%)
BNM: 10-yr yield (+0.02 to 3.88%)
Cut off time: 7.45am (25 May 2017)
US: US stock markets continued to progress higher after the Federal Reserves meeting minutes suggested that it would scale back its US$4.5trillion balance sheet. Also, the Fed mentioned in FOMC meeting that the interest rates hike will depend on the situation of the US economy.
Asia: Key regional indices ended on a positive note ahead of the Fed’s meeting minutes while investors also stayed mildly bullish prior to the OPEC meeting as Brent crude oil stayed firmer near US$54.
Bursa Malaysia: Tracking the positive performance on the overnight Dow, the FBM KLCI (+0.22%) ended in the positive territory, but the FBM Small Cap Index slipped 0.07% as profit taking activities were seen across the board. Market breadth was negative.
Outlook: As the market shifted their focus temporary on the Fed's meeting minutes and interest rates hike possibility, we opine that investors will extend their relief rally over the near term with the Dow securing above the psychological level of 21,000. Meanwhile, share prices on the local bourse could see another short term gains on the FBM KLCI following the feel-good mood from the overnight overseas markets. However, we opine that the FBM KLCI's upside will be limited around the 1,780-1,790 level as traders may be still deploying selling-into-strength strategy after the recent profit taking activities were noticed across the small cap and lower liners. Nevertheless, the launch of Mid and Small Cap Research Scheme by Bursa Malaysia later today may cap the downside of such activities.
DISCLAIMER:
https://www.hlebroking.com/v3/disclaimer.aspx