Last week, the FBM KLCI ended softer as profit taking activities kicked in on several
index heavyweights as Wall Street traded on a shortened session. However, we
noticed the US stock markets closed positively, with a 4-week winning streak as the
market could be pricing in no more rate hike from the Fed going forward as
inflationary pressure and jobs data were cooling off. Meanwhile, we believe the
overall Hang Seng Index may turn upwards with several firms from China looking at
HK Stock Exchange for IPO listing. Back on the local front, we believe the traders will
be focusing on the final week of the November reporting season and may position
ahead of the window dressing activities in December. On the commodity markets,
the Brent oil prices fell near USD80/bbl ahead of the OPEC+ meeting on 30th Nov.
Sector focus: Given the positive move on Wall Street, there might be follow through
buying support into the Technology sector. Meanwhile, the release of YTL-related
earnings was not able to excite the Utilities sector higher and we think there might
be more profit taking going forward. Hence, we think traders may stay neutral on
Utilities and focus on the Construction, Property, Building Material, Transportation &
Logistics as well as Poultry sectors.
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