M+ Online Morning Market Buzz - 5 Jan 24

Dow Jones: 37,440.34 pts (+10.15pts, +0.03%)
⬆️ Resistance:  38600
⬇️ Support:  36700

FBM KLCI: 1,477.26 pts (+14.89pts, +1.02%)
⬆️ Resistance:  1510
⬇️ Support:  1420

HSI Index: 16,645.98 pts (-0.43pts, -0.00%)
⬆️ Resistance:  17500
⬇️ Support:  16200

Crude Palm Oil: RM3,663 (+RM6, +0.16%)
⬆️ Resistance:  3830
⬇️ Support:  3540

Brent Oil: $78.25 (-$0.57, -0.73%)
⬆️ Resistance:  81.00
⬇️ Support:  73.30

Gold: $2,043.65 (+$2.16, +0.11%)
⬆️ Resistance:  2130
⬇️ Support:  2000

Market update – 5 Jan 24
Great Start For Malaysia

The FBMKLCI had a great start for 2024 and managed to surpass the stiff resistance earlier on at 1,465 as buying interest emerged on the Utilities heavyweights and 70% of the index members closed higher. Meanwhile, the US stock markets ended lower for another session as the 10-year US Treasury yield rose inched up towards 4% and traders avoided the growth stocks, specifically the Technology sector. On the economic data, the ADP non-farm report showed an increase in job activity, while unemployment claims were less-than-expected, suggesting persistent labour market strength. Closer to home, we expect the buying momentum to sustain on the local front after the breakout recently on the FBM KLCI. On the commodity market, Brent oil price notched lower after a big jump in US refined product inventories. 

Sectors focus: The Technology sector may extend its weakness following the profit taking in the US. Meanwhile, the removal of 2sen/kWh in electricity rebate for household users consuming 600-1500 kwh/month may provide upside towards Tenaga and could boost solar panels demand going forward; we favour the Utilities and Renewable Energy segments. Meanwhile, the (i) Johor-theme, (ii) ongoing and potential new mega infra projects and (iii) easing of MM2H policies could boost trading in the Construction, Building Material, and Property sectors. 

Stocks to watch:

O&G: ICON, NAIM, UZMA, WASCO
Gaming: GENM
Properties: GFM
Utilities: PUNCAK
Packaging: PPHB
Healthcare: KPJ
Others: SMRT, YBS

Source: M+ Online

M+ Online Technical Trading Stocks - 5 Jan 24

Stock Name: WASCO (5142)
Entry: Buy above RM1.010
Target: RM1.050 (4.0%), RM1.080 (6.9%)
Stop: RM0.985 (-2.5%)
Shariah: Yes
Technical: Consolidation breakout

Stock Name: PUNCAK (6807)
Entry: Buy above RM0.400
Target: RM0.425 (6.3%), RM0.450 (12.5%)
Stop: RM0.380 (-5.0%)
Shariah: Yes
Technical: Impending flag-formation breakout

Source: Bloomberg, M+ Online

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