M+ Online Morning Market Buzz - 14 Dec 23

Dow Jones: 37,090.24 pts (+512.30pts, +1.40%)
⬆️ Resistance: 37900
⬇️ Support: 35400

FBM KLCI: 1,448.04 pts (+0.92pts, +0.06%)
⬆️ Resistance: 1480
⬇️ Support: 1420

HSI Index: 16,228.75 pts (-145.75pts, -0.89%)
⬆️ Resistance: 16800
⬇️ Support: 15700

Crude Palm Oil: RM3,673 (+RM3, +0.08%)
⬆️ Resistance: 3870
⬇️ Support: 3570

Brent Oil: $73.24 (+$1.40, +1.91%)
⬆️ Resistance: 78.20
⬇️ Support: 70.90

Gold: $2,027.74 (+$48.20, +2.43%)
⬆️ Resistance: 2090
⬇️ Support: 1940

Market update – 14 Dec 23
Dovish Stance - Fed Signals 3 Rate Cute in 2024

The FBM KLCI rebounded for the third session, with the help of buying interest within selected QL, SIME, and WPRTS. Meanwhile, the US stock markets ended on a strong note as the Dow charged towards an all-time-high zone, closing above the 37k level after the Fed signaled that the interest rates have peaked and projected lower policy rate by end-2024, where the Fed indicated 3 rate cuts next year. Moreover, the US producer prices were unchanged in November amid cheaper energy goods. Hence, with that inflation data on a declining trend, we believe it may bode well for the overall market conditions which we expect further buying interest within the local stock exchange. On the commodity markets, Brent oil prices rebounded above USD74 following the drop in USD after the Fed’s statements.

Sector focus: Given the bullish Wall Street overnight performance, we think the buying interest should spillover towards stocks in the Technology sector. Also, we expect further trading interest within the Glove segment, potentially in tandem with the rise in Covid-19 cases, coupled with the anticipation of better results from Top Glove this month.

Stocks to watch:

Healthcare: KOSSAN, KPJ
Building material: MCEMENT, SCGBHD
Technology: INARI, UNISEM
Construction: IJM, KERJAYA
Property: AWC, SUNWAY

Source: M+ Online

M+ Online Technical Focus - 14 Dec 23
Southern Cable Group Berhad: Cabling Up For The Power Sector

Trading Catalyst
· Consistent earnings improvement for over the past 6 quarters and expected to gain traction going forward.
· Strong orderbook of c.RM900m with improving production capacity and efficiency, coupled with strong demand drivers from government renewable energy initiatives would bode well for the Group.
· Technically, we expect SCGBHD to breakout above RM0.375, targeting RM0.395-0.40, with a LT target at RM0.45. Support is located around RM0.35-0.355, and cut loss is set around RM0.34.
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Technical View

(i) SCGBHD (S: RM0.35-0.355, R: RM0.395-0.40, LT TP: RM0.45, CL: RM0.34)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

Source: Bloomberg, M+ Online

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