M+ Online Morning Market Buzz - 12 Dec 23

Dow Jones: 36,404.93 pts (+157.06pts, +0.43%)
⬆️ Resistance: 37200
⬇️ Support: 35300

FBM KLCI: 1,446.39 pts (+4.42pts, +0.31%)
⬆️ Resistance: 1490
⬇️ Support: 1420

HSI Index: 16,201.49 pts (-132.88pts, -0.81%)
⬆️ Resistance: 17000
⬇️ Support: 15700

Crude Palm Oil: RM3,755 (+RM14, +0.37%)
⬆️ Resistance: 3920
⬇️ Support: 3570

Brent Oil: $75.84 (+$0.26, +0.34%)
⬆️ Resistance: 80.70
⬇️ Support: 72.20

Gold: $1,981.95 (-$23.80, -1.16%)
⬆️ Resistance: 2090
⬇️ Support: 1940

Market update – 12 Dec 23
Market Optimism to Persist With New Leads

The FBM KLCI rebounded on the support and snapped a 5-day losing streak with the emergence of broad market bargain hunting activities. Meanwhile, the US stock markets continued with the upward momentum ahead of the important inflation data and the 2-day FOMC meeting this week. We believe the narrative on the CPI is significant to determine the interest rates direction going forward; thus if the US CPI is cooling more-than-expectation, the Fed may turn less hawkish next year and potential rate cut could materialise during 1H2024. At this juncture, we believe the buying interest may continue to spillover towards stocks on the local front. On the commodity markets, the Brent oil prices extended its rebound despite the demand concerns and worry on OPEC+ cuts may not be enough to keep the inventories low.

Sector focus: As expected, the YTL-related companies trended positively following the data centre collaboration news with NVIDIA and may spur trading interest in the Technology sector. Besides, the plans to revive KL-SG HSR provide buying interest towards the Construction, Property, Building Material as well as Renewable Energy sectors. Meanwhile, with the rebound in Brent oil prices, we may expect trading interest to build up within the O&G sector.

Stocks to watch:

Technology: EG, MYEG, NATGATE, SFPTECH, UNISEM
Consumer: CCK
Construction: WCEHB
Property: LBS
Building material: MNHLDG
O&G: MUHIBAH

Source: M+ Online

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