Source: Curious Earth
Well, Trump has won.
What now?
The U.S. markets seemed to sigh a relief as it was within expectations. After all, Biden’s approval rating plummeted halfway into his presidency and reached a low of 38% recently.
The S&P 500 rose by 4.6% to end last week at 5,995. Of note, the consumer discretionary, financials, industrial, technology, and energy sectors drove most of the gains according to data from SimplyWallSt.
Later in the week, I will examine Trump’s policies in depth and identify which sectors and companies will be affected. And no, I won’t be posting surface-level content. It will be one where it’s practical.
Markets Fresh From the Oven
The down-low to the performance of the China and Malaysia markets.
China: The Hang Seng China Enterprise Index (HSCEI) rose by 1.6% to end the week at 7,461 points. Help by the Chinese government is the currency of the year and probably for the next also.
Just last week, it announced that it was pumping in US$1.4 trillion to help local governments with their debt problems. And also, it is promising more support next year. Seems like the market is driven more by how investors are feeling rather than what’s happening on the ground.
Malaysia: The FBMKLCI went up by 1.0% for the week following the U.S. and China markets’ positive sentiments.
The Big 5s in Economic and Market News
Here are the 5 big news that hit the markets last week
Trump victory: Trump won, and he won it quite convincingly too.
- He garnered 312 seats vs Kamala Harris’ 226.
- What’s interesting is that Trump only has about 50% of the popular votes compared to Harris’ 48%.
- That 2% gave Trump 86 more seats. Looks like the U.S. is a gerrymandering machine and it’s in the Republican’s favour now.
Warner Bros: WB’s streaming platform Max, has just gained about 7.2 million in new subscribers in the latest quarter.
- However, its 3Q results haven’t been great. Revenue decreased by 3% as its TV business is not doing well.
China policy support: China has pumped in US$1.4 trillion to help local governments deal with their debt.
99 Speed Mart: It just released its 3Q financial results.
- Its profits dropped by 3.5% to RM107 million.
- Costs related to listing itself in the market and a one-off staff bonus were the reasons.
Targeted subsidy: The Malaysian government announced it’s using two-tiered pricing to implement the targeted petrol subsidy.
Market Trends for the Week
Trump’s victory impact on Malaysia: It seems like the technology and semiconductor stocks gained following Trump’s victory.
- UOB said that the tech and gloves stock could benefit but proposed tariffs might affect China and indirectly Malaysia.
- Malacca Securities thinks that strong U.S. dollar could benefit Malaysia with more buying in the market.
