The FBM KLCI continues to rebound for the fourth session, lifted by QL, PETGAS and
PMETAL as well as better sentiment in Hong Kong market. Again, Wall Street gained
momentum, with the Dow closing at record close for the second session, while
S&P500 and Nasdaq rose 0.26% and 0.19%, as retail sales grew by 0.3% in the month
of November, coupled with the optimism that the Fed will stay in a dovish stance to
lower down the interest rates at least by 3 times next year. Given the anticipation of
the lower interest rate environment going forward, the market was more positive in
the real estate segment. On the commodity markets, Brent oil prices extended the
rebound above USD76/bbl as dollars fell after the dovish Fed’s statements.
Sector focus: With this bullish tone in the US markets, we expect buying interest to
spillover towards stocks on the local front, especially the Technology sector. We also
favour the Healthcare - amid improving outlook on glove ASP, Energy – IEA bumps
up the 2024 demand outlook, Construction, Building Material & Property – potential
revival of KL-SG HSR. Besides, we like the stability in the Banking and Telco sectors.