M+ Online Morning Market Buzz - 27 Dec 23

Dow Jones: 37,545.33 pts (+159.36pts, +0.43%)
⬆️ Resistance:  38400
⬇️ Support:  36400

FBM KLCI: 1,450.78 pts (-3.60pts, -0.25%)
⬆️ Resistance:  1510
⬇️ Support:  1430

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

Crude Palm Oil: RM3,775 (+RM12, +0.32%)
⬆️ Resistance:  3900
⬇️ Support:  3620

Brent Oil: $79.07 (+$1.94, +2.45%)
⬆️ Resistance:  83.40
⬇️ Support:  76.30

Gold: $2,067.81 ($0.00, 0.00%)
⬆️ Resistance:  2120
⬇️ Support:  1990

Market update – 27 Dec 23
Upward Rally Continues in the US

The FBM KLCI extended the consolidation phase with further profit taking activities emerging within the index heavyweights. However, the US stock markets continued to charge higher led by the technology sector in anticipation of at least 3 rate cuts by the Federal Reserves in 2024. This is in line with our view that given the US GDP is still growing in 3Q23 and the inflation data namely the CPI, PPI and PCE came in within expectations last month, we believe the Fed will be staying less hawkish for the near term. Meanwhile, closer to home, we remain optimistic in the final trading week of the year that window dressing activities may emerge and push the FBM KLCI higher. On the commodity markets, Brent oil prices traded higher above the USD80/bbl mark. 

Sector focus: We are still expecting buying support to return within the Technology sector in view of the strong rally in the US. Also, we like the Johor-theme coupled with the potential revival of the mega infrastructure projects next year, which may provide an upside move towards the Construction, Properties, Building Materials as well as the Utilities sectors. We favour the Consumer sector in view of normalising costs and the ongoing recovery theme post Covid-19 environment.

Stocks to watch:

Consumer: HUPSENG, SDS
Construction: ECONBHD, EKOVEST, SUNCON
Healthcare: TMCLIFE
Property: SIMEPROP
O&G: NAIM
Financial: BURSA
Others: KUB

Source: M+ Online

M+ Online Technical Focus - 27 Dec 23
SDS Group Berhad:Steady Growing Earnings in the Consumer Sector

Trading Catalyst
·     Solid earnings due to SDS being a strong household brand in Johor for bakery goods, coupled with steady store expansions.
·     The increasing trend towards urbanization increases consumer demand for convenient ready to eat goods to save time, which will benefit SDS’s bakery goods.
·    Technically, SDS has experienced a breakout above RM0.71, targeting RM0.785-0.79, with a LT target at RM0.825. Support is located around RM0.68-0.69, and cut loss is set around RM0.67.
0

Technical View

(i) SCGBHD (S: RM0.68-0.69, R: RM0.785-0.79, LT TP: RM0.825, CL: RM0.67)

S: Support, R: Resistance, LT TP: Long term target price, 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.