Overnight, US indices slip further together, DJ (-0.97%), S&P500 (-1.07%) and Nasdaq (-1.21%) amid on cautious sentiment. VIX surged to 17.40 from last week low of 15, demonstrating deterioration of risk sentiment.
US treasury 10-y yield finally took a halt from the rally from 9 Dec of 4.12% to hit the half yearly high of 4.63% last Friday before settling down yesterday at 4.53% (-0.11%).
This month, bond futures tempered optimism of rate cut in year 2025, hitting the interest-rate sensitive tech sector. If compared to last week, investors increase the probability of Fed fund rate cut from 37 bps to 45 bps for year 2025.
Malaysia markets
Local Macro
Year end was quiet for currency and bond markets whereby USDMYR edged lower at 4.4640 (-0.0060) and Malaysia 10-year govvy added +0.03% to 3.85%.
KLCI Performance
KLCI was muted from the negative sentiment of global market. After breaking 1,600 level, the index continued soaring and close at 1,637 (+9.54) convincingly.
Malaysia equity flow (MYR million)
As we last chat, foreign selling momentum was diminishing. We finally saw offshore bought local equities, even thought just MYR 3 million yesterday. No matter what, inflow is always better than outflow.
Sectoral performance (%)
Malaysia equities outperformed regional peers whereby almost all sectors strengthened overnight firmly, only tech sector suffered a small loss.
Stocks on focus:
$SIMEPROP (5288.MY)$is back. It closed at 1.700 (+5.6%) and was actively traded, with 31 million shares changed hands. SIMEPROP provides property development, offers parks, hotels, resorts, gold club, services hospitality and leisure industries in Malaysia. Its P/E and dividend yield are around 21 and 1.76% respectively.
Bloomberg source: SIMEPROP graph and volume
Bloomberg source: SIMEPROP target price by analysts
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