M+ Online Morning Market Buzz - 28 Dec 23

Dow Jones: 37,656.52 pts (+111.19pts, +0.30%)
⬆️ Resistance: 38500
⬇️ Support: 36400

FBM KLCI: 1,454.22 pts (+3.44pts, +0.24%)
⬆️ Resistance: 1500
⬇️ Support: 1430

HSI Index: 16,624.84 pts (+284.43pts, +1.74%)
⬆️ Resistance: 17200
⬇️ Support: 16000

Crude Palm Oil: RM3,755 (-RM15, -0.40%)
⬆️ Resistance: 3900
⬇️ Support: 3620

Brent Oil: $81.07 (-$1.73, -2.13%)
⬆️ Resistance: 83.40
⬇️ Support: 76.30

Gold: $2,077.49 (+$14.73, +0.72%)
⬆️ Resistance: 2130
⬇️ Support: 2000

Market update – 28 Dec 23
Window Dressing Activities To Persist

The FBM KLCI snapped a 5-day retracement and rebounded on the back of the window dressing activities towards year end. Meanwhile, Wall Street trended higher overnight with the expectation of a more dovish stance from the Fed and potentially cutting the interest rate in 2024. Do note that the Fed’s interest rate hiking process had tame the inflationary pressure without igniting the recession is likely to push the markets higher in the near term. The dollar continues to fall, while the US 10-year bond yield declines further. We believe the positive sentiment on Wall Street could spillover towards stocks on the local front, pushing the FBM KLCI higher. On the commodity markets, Brent oil prices inched lower below the USD80/bbl mark as oil inventories rose this week by 1.84m barrels.

Sector focus: With the ongoing window dressing activities, we believe buying interest could emerge further within the index heavyweights at least for the rest of the week. Meanwhile, we believe the Johor-theme, easing requirements of MM2H programme, coupled with the potential revival of KL-SG HSR would bode well for the Construction, Property, Building Material as well as the Utilities sectors. Also, we believe the Consumer sector may gain more attention next year with the focus on subsidy rationalisation programmes next year.
Stocks to watch:

Consumer: CCK, HUPSENG
Technology: INARI, SMRT
Property: IOIPG, MAHSING
O&G: ICON, NAIM
Construction: KERJAYA
Healthcare: KPJ
Utilities: RANHILL

Source: M+ Online

M+ Online Technical Focus - 28 Dec 23
Hup Seng Industries Berhad:Decent Dividend Yield with Growing Earnings

Trading Catalyst
· Established since 1958, with its long-standing household brand, capturing solid demand among local consumers.
· Net profit has been consistently positive on the back of strong domestic sales, coupled with strong dividend payout above an average of 70% since 2012.
· Technically, HUPSENG has experienced a breakout above RM0.805, targeting RM0.86-0.88, with a LT target at RM0.90. Support is located around RM0.76-0.78, and cut loss is set around RM0.75.

Technical View

(i) HUPSENG (S: RM0.76-0.78, R: RM0.86-0.88, LT TP: RM0.90, CL: RM0.75)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

Source: Bloomberg, M+ Online

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