The FBM KLCI headed lower for the session, bucking the overall positive momentum
shown on the global stock markets. Meanwhile, the US stock markets were closed
for Thanksgiving holiday. Although we may anticipate that the trading activities to
be slower throughout the Asia trading hours, upside could emerge with the
expectation that Beijing would boost policy support to aid the failing sector, where
China may allow banks to offer unsecured short-term loans to qualified developers
for the first time. This may spur the upside move on the local equities and traders
will focus on the ongoing reporting season. On the commodity markets, the Brent oil
prices declined near the USD81/bbl as concerns over demand persisted amid rising
US inventories and the next OPEC+ meeting will be on 30th Nov.
Sector focus: Based on the momentum that has built up over the past few days, we
expect the Healthcare sector to stay in the active list with further continuation of
buying interest ahead of the release of Supermax’s results. Meanwhile, we believe
the results from Genting-related and YTL-related are solid and could provide trading
opportunities within the Tourism and Utilities sectors. Besides, we still favour the
Property, Building Material, Construction, and Transportation & Logistics sectors.
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