M+ Online Morning Market Buzz - 6 Dec 23

Dow Jones: 36,124.56 pts (-79.88pts, -0.22%)
⬆️ Resistance:  37000
⬇️ Support:  34700

FBM KLCI: 1,449.46 pts (-1.56pts, -0.11%)
⬆️ Resistance:  1490
⬇️ Support:  1420

HSI Index: 16,327.86 pts (-318.19pts, -1.91%)
⬆️ Resistance:  17800
⬇️ Support:  16000

Crude Palm Oil: RM3,760 (-RM21, -0.56%)
⬆️ Resistance:  4000
⬇️ Support:  3690

Brent Oil: $77.20 (-$0.83, -1.06%)
⬆️ Resistance:  86.50
⬇️ Support:  75.50

Gold: $2,019.36 (-$10.06, -0.50%)
⬆️ Resistance:  2180
⬇️ Support:  1970

Market update – 6 Dec 23
Could Be Due For a Rebound

The FBM KLCI declined for another session amid profit taking activities. In the US, trading tone was mixed with the Dow and S&P 500 ended slightly lower, while the Nasdaq rose for the session. The JOLTS report suggested that the US jobs opening was the lowest level since early 2021 in October, and the market’s narrative for the Fed is it has ended with the interest rates upcycle and could be looking at a rate cut as early as March next year. Thus, with the expectation of an interest rate cut next year, we think it may provide buying support to the local equities. On the commodity markets, the Brent oil prices dropped another 1.5% to trade below USD77/bbl amid unimpressed OPEC+ supply cut and demand concerns. 

Sector focus: As the Technology-heavy Nasdaq rose against the weaker backdrop in the US, we believe the buying interest may build up in the Technology sector on Bursa exchange. Meanwhile, we think traders may avoid the O&G sector on the back of weak Brent crude oil price. Following the November reporting month, we opine that traders will reassess the earnings, we favour selected stocks within the REIT, Construction, Property, Building Materials and Technology sectors. 

Stocks to watch:

Consumer: AJI, MSM
Construction: KERJAYA
Transportation: SWIFT
O&G: MUHIBAH
Automotive: APM
Technology: ATECH, EG, GTRONIC
Others: KUB

Source: M+ Online

M+ Online Technical Trading Stocks - 6 Dec 23

Stock Name: KUB (6874)
Entry: Buy above RM0.580
Target: RM0.605 (4.3%), RM0.620 (6.9%)
Stop: RM0.565 (-2.6%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: MUHIBAH (5703)
Entry: Buy above RM0.785
Target: RM0.820 (4.5%), RM0.850 (8.3%)
Stop: RM0.755 (-3.8%)
Shariah: Yes
Technical: Symmetrical triangle formation breakout

Source: Bloomberg, M+ Online

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