M+ Online Morning Market Buzz - 4 Dec 23

Dow Jones: 36,245.50 pts (+294.61pts, +0.82%)
⬆️ Resistance: 37000
⬇️ Support: 34600

FBM KLCI: 1,456.38 pts (+3.64pts, +0.25%)
⬆️ Resistance: 1490
⬇️ Support: 1420

HSI Index: 16,830.30 pts (-212.58pts, -1.25%)
⬆️ Resistance: 18100
⬇️ Support: 16500

Crude Palm Oil: RM3,874 (-RM21, -0.54%)
⬆️ Resistance: 4010
⬇️ Support: 3750

Brent Oil: $78.88 (-$1.98, -2.45%)
⬆️ Resistance: 86.50
⬇️ Support: 77.20

Gold: $2,072.22 (-$7.83, -0.39%)
⬆️ Resistance: 2120
⬇️ Support: 1970

Market update – 4 Dec 23
Buying interest may persist

Following the bullish engulfing last week on the FBM KLCI, the buying support continued within selected Telecommunication heavyweights; lifted the KLCI higher for the second session. Meanwhile, with the Fed’s Chair Jerome Powell offered optimism on the progress that the US central bank’s 2% inflation target is well on track, the Dow & S&P500 surged to highest close in 2023, with the market looking at a peak of interest rate and looking for rate cut potential in 2024. This week, we expect traders to focus on the (i) ISM Services PMI, (ii) jobs data such as unemployment claims, unemployment rate, non-farm payroll. On the commodity markets, the Brent oil prices traded below USD80/bbl with as traders were not convinced by the additional voluntary cuts from OPEC+ members, while the gold price surged towards all-time-high at on the back of rate cut optimism.

Sector focus: We expect the investors to re-assess and trade the companies with positive growth in earnings following the November reporting season. We favour the Poultry sector, specifically the egg segment as traders could be waiting for the upliftment of egg’s ceiling price. Also, in view of the strong gold price, the gold retailing stocks could be favourable to trade. Meanwhile, with the Brent oil prices declining, traders may be avoiding in the near term.

Stocks to watch:

Technology: EG, UNISEM
Building Material: MCEMENT, WELLCAL
Consumer: MSM¸ TEOSENG
Property: LBS
Packaging: PPHB
Automotive: MBMR
O&G: MUHIBAH

Source: M+ Online

M+ Online Technical Trading Stocks - 4 Dec 23

Stock Name: MSM (5202)
Entry: Buy above RM1.460
Target: RM1.520 (4.1%), RM1.550 (6.2%)
Stop: RM1.400 (-4.1%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: UNISEM (5005)
Entry: Buy above RM3.370
Target: RM3.480 (3.3%), RM3.500 (3.9%)
Stop: RM3.300 (-2.1%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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