M+ Online Morning Market Buzz - 25 Dec 23

Dow Jones: 37,385.97 pts (-18.38pts, -0.05%)
⬆️ Resistance: 38400
⬇️ Support: 36400

FBM KLCI: 1,454.38 pts (-1.20pts, -0.08%)
⬆️ Resistance: 1510
⬇️ Support: 1430

HSI Index: 16,340.41 pts (-280.72pts, -1.69%)
⬆️ Resistance: 17200
⬇️ Support: 16000

Crude Palm Oil: RM3,738 (-RM3, -0.08%)
⬆️ Resistance: 3900
⬇️ Support: 3620

Brent Oil: $79.07 (-$0.32, -0.40%)
⬆️ Resistance: 82.30
⬇️ Support: 74.30

Gold: $2,053.08 (+$14.56, +0.72%)
⬆️ Resistance: 2120
⬇️ Support: 1980

Market update – 26 Dec 23
Upbeat Mode To Prevail

The FBM KLCI digested the recent gains for the third session as profit taking activities emerged within the banking heavyweights. Similarly, the US stock markets trended sideways after a long stretch of upward trending movements. We believe the market is still pricing in the dovish statements from the Federal Reserves, coupled with the recent inflation data that came in within expectations. Given the US GDP is still growing for 3Q, and both the PCE and CPI were increasing at a moderate pace, we expect global markets to trend higher over the near term. Hence, for this week, we believe buying support may return on the local front, heading into the final week of window dressing activities. On the commodity markets, Brent oil prices maintained around the USD80/bbl level.

Sector focus: We will be looking for possible trading opportunities within the Banking heavyweights amid the final week of window dressing activities. Meanwhile, we like the Technology sector with the rising Wall Street environment. Also, the Johor-theme may emerge in 1H24 if the government revive the KL-SG HSR project. Hence, we favour the Construction, Property, Building Material and Utilities sectors.

Stocks to watch:

Consumer: CCK, HUPSENG, QL
Property: KSL, MAHSING, SCIENTX
Transportation: SWIFT
O&G: UZMA
Building Material: YBS
Financial: BURSA

Source: M+ Online

1Q24 Market Chat: Reboot, Realign and Revitalise

• The US GDP continues to grow, while inflationary pressure has been cooling off throughout the year. Thus, the market is pricing in at least 3 rate cuts for 2024.
• Overall external catalysts have been stabilising at least for the near term and investors should focus on domestic catalysts going into 2024.
• We expect infrastructure project could restart next year, while NETR and NIMP will provide decent growth. Besides, the Johor-theme could be emerging as a strong catalyst for 2024. Also, we like the data centre and tech-related investments.
• Given this setup, we expect there will be opportunities within the Construction, Building Materials, Property, Utilities, Technology as well as Consumer & Transportation, while Banking and Telco could be some defensive picks.

1Q24 Stock picks

1. AME (S: RM1.55-1.63, R: RM1.92-2.05, CL: RM1.53)
2. CCK (S: RM0.760-0.805, R: RM0.950-1.0, CL: RM0.750)
3. INARI (S: RM2.75-2.86, R: RM3.30-3.45, CL: RM2.70)
4. ITMAX (S: RM1.70-1.76, R: RM1.95-2.0, CL: RM1.68)
5. KSL (S: RM1.07-0.995, R: RM1.21-1.30, CL: RM1.05)
6. MYEG (S: RM0.750-0.805, R: RM1.00-1.08, CL: RM0.740)
7. NATGATE (S: RM1.35-1.48, R: RM1.76-1.85, CL: RM1.32)
8. OSK (S: RM1.10-1.15, R: RM1.30-1.35, CL: RM1.08)
9. PBBANK (S: RM4.06-4.17, R: RM4.41-4.50, CL: RM3.99)
10. SCGBHD (S: RM0.380-0.400, R: RM0.475-0.500, CL: RM0.370)
11. SUNCON (S: RM1.85-1.92, R: RM2.15-2.25, CL: RM1.82)
12. SWIFT (S: RM0.495-0.515, R: RM0.600-0.635, CL: RM0.470)
13. TM (S: RM5.21-5.35, R: RM6.00-6.25, CL: RM5.18)
14. WCEHB (S: RM0.820-0.880, R: RM1.00-1.07, CL: RM0.810)

S: Support, R: Resistance, CL: Cut loss

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.