M+ Online Morning Market Buzz - 20 Dec 23

Dow Jones: 37,557.92 pts (+251.90pts, +0.68%)
⬆️ Resistance: 38400
⬇️ Support: 35800

FBM KLCI: 1,465.67 pts (+0.39pts, +0.03%)
⬆️ Resistance: 1500
⬇️ Support: 1420

HSI Index: 16,505.00 pts (-124.23pts, -0.75%)
⬆️ Resistance: 17400
⬇️ Support: 15900

Crude Palm Oil: RM3,792 (+RM37, +0.99%)
⬆️ Resistance: 3870
⬇️ Support: 3590

Brent Oil: $77.95 (+$1.31, +1.68%)
⬆️ Resistance: 81.30
⬇️ Support: 70.90

Gold: $2,040.35 (+$7.57, +0.38%)
⬆️ Resistance: 2090
⬇️ Support: 1940

Market update – 20 Dec 23
Window Dressing and Rate Cut Optimism Rally

The FBM KLCI traded mixed as profit taking activities kicked in after a significant rally last week, but the Properties and Utilities performed on a stronger tone. In the US, following the dovish tone from the Fed, signalling at least 3 rate cuts next year, the stock markets continued to charge higher for the 9th session. This week, the market will be watching the important economic data releases such as the US GDP and PCE price index, should there be any disappointment in the data, it might affect the market sentiment. On the local front, we believe window dressing activities may persist throughout the next few trading sessions, similar to the previous years. On the commodity markets, Brent oil prices rebounded nearer to the USD80/bbl zone amid the heightened tension in the Red Sea.

Sector focus: Given the strong rally in the US, we could be anticipating buying interest to spillover towards the Technology sector on the local front. Meanwhile, we have noticed trading interest building up within the Property segment amid the new MM2H programme. Besides, commodity related segments namely the O&G and Gold sectors could stay relatively strong amid the softer dollar trend going forward. In the recent Glove industry rally, we expect profit taking activities to emerge.

Stocks to watch:

Property: E&O, OSK, UOADEV
Construction: WCEHB
Utilities: PBA, YTLPOWR
O&G: PANTECH, WASCO
Technology: INARI, ITMAX

Source: M+ Online

M+ Online Technical Trading Stocks - 20 Dec 23

Stock Name: E&O (3417)
Entry: Buy above RM0.600
Target: RM0.635 (5.8%), RM0.650 (8.3%)
Stop: RM0.575 (-4.2%)
Shariah: Yes
Technical: Consolidation breakout

Stock Name: PBA (5041)
Entry: Buy above RM1.240
Target: RM1.300 (4.8%), RM1.340 (8.1%)
Stop: RM1.200 (-3.2%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+ Online

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.