M+ Online Morning Market Buzz - 3 Jan 24

Dow Jones: 37,715.04 pts (+25.50pts, +0.07%)
⬆️ Resistance: 38600
⬇️ Support: 36800

FBM KLCI: 1,453.10 pts (-1.56pts, -0.11%)
⬆️ Resistance: 1500
⬇️ Support: 1420

HSI Index: 16,788.55 pts (-258.84pts, -1.52%)
⬆️ Resistance: 17500
⬇️ Support: 16200

Crude Palm Oil: RM3,628 (-RM32, -0.87%)
⬆️ Resistance: 3870
⬇️ Support: 3580

Brent Oil: $77.04 (-$0.95, -1.23%)
⬆️ Resistance: 83.00
⬇️ Support: 74.10

Gold: $2,058.96 ($0.00, 0.00%)
⬆️ Resistance: 2140
⬇️ Support: 2020

Market update – 3 Jan 24
Stock Markets Started 2024 On A Mixed Note

Without any significant catalysts, coupled with the softer manufacturing activities in China, the FBM KLCI closed lower. Similarly, Wall Street started the year on a mixed note led by Apple Inc following the downgrade from Barclays. We believe the overall sentiment could be turning negative as 10-year Treasury yields climbed near 4.00%. Meanwhile, investors could be waiting for the next FOMC meeting (end Jan) to identify potential rate cut signals going forward. Also, we believe the heightened geopolitical tension in the Red Sea region may spark downside risk for the markets. Nevertheless, we still expect buying interest to emerge on the local front with catalysts such as the potential revival of KL-SG HSR, NETR, NIMP as well as the launching of PADU systems. On the commodity markets, Brent oil prices ended around the USD76/bbl level, despite the rising tension in the Red Sea.

Sector focus: We like the overall Utilities sector, especially related to the (i) NETR blueprint, (ii) potential water tariff revisions and (iii) data centre that consumes high volumes of water. Hence, we expect water-related stocks to emerge as a growing segment at least for the 1Q24. Other catalysts such as KL-SG HSR and easing requirements of MM2H may benefit the Construction, Building Material, and Property sectors.

Stocks to watch:

Building Material: HUMEIND, MNHLDG
Utilities: RANHILL
Consumer: SPRITZER
Telco: TM
Construction: EKOVEST
O&G: WASCO
Glove: KOSSAN
Technology: GREATEC
Others: KUB

Source: M+ Online

M+ Online Technical Trading Stocks - 3 Jan 24

Stock Name: RANHILL (5272)
Entry: Buy above RM0.920
Target: RM0.950 (3.3%), RM0.980 (6.5%)
Stop: RM0.900 (-2.2%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: SPRITZER (7103)
Entry: Buy above RM1.850
Target: RM1.920 (3.8%), RM1.980 (7.0%)
Stop: RM1.800 (-2.7%)
Shariah: Yes
Technical: Impending flag-formation breakout

Source: Bloomberg, M+ Online

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