Stocks: FBM KLCI maintained its upward momentum

Wall Street continued to climb predominantly fueled by weaker US inflationary data which ultimately indicates the end of the Federal Reserves’ battle with rate hikes. Although there are no signs of any rate cut as yet, sentiment remains positive that interest rates may have peaked.

As such, the DJI Average jumped by 163 points while the Nasdaq added 9 points as the US 10-year yield inched marginally higher at 4.537%. Over in Hong Kong, the HSI surged past the 18,000 mark on cooling US economy coupled with the US$137bn rescue package for the property sector.

Local stock market

The FBM KLCI maintained its upward momentum underpinned by broad-based buying amid a strong regional performance. We believe the accumulation of stocks to persist today thus expect the index to hover within the 1,465-1,475 range.

“Meanwhile, we maintain our view that the benchmark index will close at a year high above the 1,500 level with our 2023 target set at 1,560,” says Rakuten.