M+ Online Morning Market Buzz - 22 Dec 23

Dow Jones: 37,404.35 pts (+322.35pts, +0.87%)
⬆️ Resistance:  38400
⬇️ Support:  36400

FBM KLCI: 1,455.58 pts (-8.98pts, -0.61%)
⬆️ Resistance:  1510
⬇️ Support:  1430

HSI Index: 16,621.13 pts (+7.32pts, +0.04%)
⬆️ Resistance:  17400
⬇️ Support:  16100

Crude Palm Oil: RM3,704 (-RM37, -0.99%)
⬆️ Resistance:  3900
⬇️ Support:  3600

Brent Oil: $79.70 (-$0.28, -0.35%)
⬆️ Resistance:  82.30
⬇️ Support:  73.80

Gold: $2,045.95 (+$14.56, +0.72%)
⬆️ Resistance:  2090
⬇️ Support:  1980

Market update – 22 Dec 23
Santa Claus Rally Continues

The FBM KLCI extended the pullback for the second session with further profit taking activities from the banking heavyweights. Meanwhile, Wall Street ended positively after a sharp one-day pullback despite the US GDP being revised lower at 4.9% for 3Q23, while jobless claims came in at 205k vs. estimates of 214k. Market will be watching the Federal Reserve’s preferred PCE Inflation report that will be released later tonight; as of this juncture, the dollar index headed lower with the anticipation of the dovish stance from the Fed next year. Following the positive rebound on Wall Street, buying interest may return to the local exchange. On the commodity markets, Brent oil prices steadied around the USD80/bbl as record US production and rising inventories offsetting the tensions in the Middle East, limiting the upside at this juncture. 

Sector focus: Traders could relook into the Technology sector after the strong rebound on Wall Street, as we noticed overall earnings have been stabilising at least for the past 2 quarters. Meanwhile, we favour the infrastructure theme next year coupled with the Johor-region focus theme. Thus, we believe it should benefit the Construction, Property, Building Material and Utilities sectors. 

Stocks to watch:

Property: AWC, ECOWLD, UEMS
Technology: INARI, TM, UNISEM
Construction: IJM, KERJAYA, MRCB
Medical: TMCLIFE

Source: M+ Online

M+ Online Technical Trading Stocks - 22 Dec 23

Stock Name: AWC (7579)
Entry: Buy above RM0.670
Target: RM0.700 (4.5%), RM0.725 (8.2%)
Stop: RM0.645 (-3.7%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Stock Name: UNISEM (5005)
Entry: Buy above RM3.380
Target: RM3.480 (3.0%), RM3.550 (5.0%)
Stop: RM3.300 (-2.4%)
Shariah: Yes
Technical: Bullish engulfing candle

Source: Bloomberg, M+ Online

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