M+ Online Morning Market Buzz - 5 Dec 23

Dow Jones: 36,204.44 pts (-41.06pts, -0.11%)
⬆️ Resistance: 37000
⬇️ Support: 34700

FBM KLCI: 1,451.02 pts (-5.36pts, -0.37%)
⬆️ Resistance: 1490
⬇️ Support: 1420

HSI Index: 16,646.05 pts (-184.25pts, -1.09%)
⬆️ Resistance: 17900
⬇️ Support: 16300

Crude Palm Oil: RM3,840 (+RM16, +0.42%)
⬆️ Resistance: 4010
⬇️ Support: 3740

Brent Oil: $78.88 (-$0.77, -0.98%)
⬆️ Resistance: 86.50
⬇️ Support: 76.00

Gold: $2,029.42 (+$35.81, +1.72%)
⬆️ Resistance: 2180
⬇️ Support: 1980

Market update – 5 Dec 23
Sideways consolidation to be anticipated

The FBM KLCI has taken a break after a two-day rally, with the selling pressure noticed within Nestle and PCHEM. Also, the profit taking activities emerged on Wall Street ahead of the jobs data which may indicate the direction of the Fed’s rate policy going forward. The market is looking at a pause for the interest rate this year, and could be expecting a rate cut as soon as March next year. Do note that the next FOMC meeting will be held on 12-13 Dec. Meanwhile, we believe the ongoing geopolitical tension in the Middle East may be dampening the overall market sentiment as well, limiting the upside potential on the global and local stocks markets. On the commodity markets, the Brent oil prices declined more than 1% to trade around USD78/bbl despite the additional production cuts by the OPEC+ members.

Sector focus: The positive sentiment may sustain in the REIT sector if the OPR is maintained at this level. Meanwhile, we believe traders should avoid the O&G sector given the weak Brent crude oil prices. We expect traders to focus on the window dressing opportunities this month within the government linked corporations that are in the Construction and Property sectors. Also, the usual sector that may surge will be the Banks.

Stocks to watch:

Technology: ATECH, GTRONIC
Consumer: AJI, SPRITZER
Healthcare: KPJ, SUNZEN
O&G: MUHIBAH
Solar related: CYPARK
Property: KERJAYA

Source: M+ Online

M+ Online Technical Trading Stocks - 5 Dec 23

Stock Name: ATECH (5302)
Entry: Buy above RM2.740
Target: RM2.850 (4.0%), RM2.900 (5.8%)
Stop: RM2.700 (-1.5%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: MUHIBAH (5703)
Entry: Buy above RM0.760
Target: RM0.795 (4.6%), RM0.825 (8.6%)
Stop: RM0.735 (-3.3%)
Shariah: Yes
Technical: Symmetrical triangle formation breakout

Source: Bloomberg, M+ Online

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