M+ Online Morning Market Buzz - 18 Dec 23

Dow Jones: 37,305.16 pts (+56.81pts, +0.15%)
⬆️ Resistance: 38100
⬇️ Support: 35600

FBM KLCI: 1,462.45 pts (+6.19pts, +0.43%)
⬆️ Resistance: 1500
⬇️ Support: 1420

HSI Index: 16,792.19 pts (+390.00pts, +2.38%)
⬆️ Resistance: 17400
⬇️ Support: 15700

Crude Palm Oil: RM3,711 (-RM1, -0.03%)
⬆️ Resistance: 3870
⬇️ Support: 3590

Brent Oil: $76.55 (+$0.67, +0.88%)
⬆️ Resistance: 78.90
⬇️ Support: 70.90

Gold: $2,019.62 (-$16.74, -0.82%)
⬆️ Resistance: 2090
⬇️ Support: 1940

Market update – 18 Dec 23
Santa Rally May Be Continuing After a Breather

The FBM KLCI revisited the resistance along 1,465, ending on a positive note for the fifth session coupled with the effective addition of YTL and YTLPOWR into the FBM KLCI. Meanwhile, the US stock markets were relatively positive on the Triple Witching event last Friday. Given the (i) more positive retail sales in November, (ii) dovish tone from the Fed in the most recent FOMC meeting and (iii) anticipation of 3 rate cuts by 2024, we believe there could be more upside potential to the stock markets going forward. Also, a softer dollar would support and lift the emerging markets higher. Thus, we opine that the market may be acquiring fundamentally solid companies in Hong Kong exchange for long term rewards. On the commodity markets, Brent oil prices extended the rebound for another session above USD76/bbl.

Sector focus: Given the addition of YTL and YTLPOWR into the FBM KLCI, the Utilities sector may be worth trading in the near term. Meanwhile, we like the Johor theme with the ongoing developments such as JB-SG RTS as well as the potential revival of KL-SG HSR. Thus, we believe buying support may be extending within the Construction, Property, Building Material and Solar-related sectors. Also, we favour the Technology sector amid the bullish US stock markets environment.

Stocks to watch:

Consumer: CCK
Technology: MYEG, UNISEM
Construction: KERJAYA
Property: AWC
Solar-related: SLVEST
O&G: UZMA, WASCO
Financial: AMBANK, PBBANK

Source: M+ Online

M+ Online Technical Trading Stocks - 18 Dec 23

Stock Name: AWC (7579)
Entry: Buy above RM0.650
Target: RM0.680 (4.6%), RM0.700 (7.7%)
Stop: RM0.630 (-3.1%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Stock Name: UNISEM (5005)
Entry: Buy above RM3.350
Target: RM3.500 (4.5%), RM3.550 (6.0%)
Stop: RM3.250 (-3.0%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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