Mild Window Dressing to Lift Blue Chips

Key blue chips closed higher on Thursday, lifted by mild window-dressing support, while most key regional markets except China, Japan and South Korea were closed for the Boxing Day holiday. The FBM KLCI ended up 10.71 points at 1,613.70, off an early low of 1,602.79 and high of 1,615.28, as gainers led losers 692 to 295 on moderate turnover of 2.47bn shares worth RM1.86bn.

Resistance at 1,627/1,648; Support at 1,588/1,565

Mild window dressing activities should aid selective key index heavyweights higher ahead of the weekend, while trading activity stay muted due to the year-end holiday season. Immediate index resistance remains at 1,627, next 1,648, followed by the September peak of 1,675. Immediate support stays at 1,588, the 38.2%FR of the 1,529 low (6 Aug) to 1,684 high (29 Aug) rally, with stronger key supports at 1,565, the 23.6%FR level, and then 1,550.

Bargain Genting Berhad & GENM

Positive technical momentum implies further upside bias for Genting Berhad, with a confirmed breakout above the 100%FP (RM3.88) to target RM4.00 and the 23.6%FR (RM4.15) ahead, while the 123.6%FP (RM3.60) and lower Bollinger band (RM3.51) cushion downside. Likewise, a breakout confirmation above the 100%FP (RM2.26) on GENM should aim for the 76.4%FR (RM2.38) and 61.8%FR (RM2.46) going forward, while key chart supports are from the 123.6%FP (RM2.14) and 138.2%FP (RM2.07).

Asia Mixed as Australia, Hong Kong Closed for Boxing Day

Asian stocks were mostly up Thursday, with several markets remaining closed for Boxing Day. Japan’s Nikkei 225 rose 1.12% to close at 8,220.9 while the Topix added 1.20% to close at 2,766.78, a day after a report said the country was preparing a record USD735 billion budgets for its fiscal year starting in April. The budget will account for increased social security and debt-servicing expenses. Shares of Japanese automakers Nissan and Honda rose 6.58% and 3.84% respectively. Both companies had begun official negotiations to merge at the start of the week, which could create the world’s third-largest carmaker by sales.

South Korea’s Kospi slid 0.44% to close at 2,429.67 while the Kosdaq lost 0.66% to close at 675.64. The country’s main opposition Democratic Party has submitted a bill to impeach acting President Han Duck-soo, with voting on it due Friday. China’s CSI 300 rose slightly higher to close at 3,987.48 as the World Bank upgraded the country’s gross domestic product growth forecast for 2024 and 2025, reflecting recent policy adjustments. It now expects China’s GDP to grow 4.9% in 2024 compared with its previous projection of 4.8%. In 2025, China’s GDP is expected to come in at 4.5%, higher than the organization’s prior forecast of 4.1%. Australia, New Zealand and Hong Kong markets were closed for the Boxing Day holiday.

Wall Street Subdued as Traders Digest Job Data

Wall Street’s main indexes wavered in a quiet post-holiday session overnight as mixed jobless claims data did little to alter bets on the Federal Reserve outlook. The Dow Jones Industrial Average inched higher by 0.07% to close at 43,325.80. The S&P 500 slipped 0.04% to 6,037.59, while the Nasdaq Composite inched lower by 0.05% to 20,020.36. New U.S. claims for unemployment benefits came in slightly below analysts' estimates, while ongoing claims jumped to their largest number since November 2021, suggesting laid off workers are having increasing difficulty finding new jobs. Overall trading activity remains light, as many traders remain away from their desks following the Christmas Day holiday on Wednesday.

The yield on the benchmark 10-year Treasury topped 4.63%, according to Tradeweb, putting it on course to settle at a multi month high. Bond yields rise as prices fall. Higher yields are traditionally seen as negative for growth stocks, as it raises the cost of their borrowing to fund expansion. Among those mega cap stocks, six were trading in negative territory, led by the 1.76% decline by Tesla. Amazon.com slipped 0.87%, while Meta Platforms shed 0.72%.

Source: TA Research - 27 Dec 2024