Market update – 12 Jan 24
Mild Bargain Hunting Activities to Emerge

The FBM KLCI ended the session with a two-day pullback as profit taking activities were noted within the gaming heavyweights after Genting plans another round of US$100m equity injection into Empire Resorts. Meanwhile, the Wall Street had a volatile move after the release of CPI data, which is hotter-than-expected, while the unemployment claims came in below-the-expectation, suggesting that the labour market is rather strong at this juncture. With that, investors will be eyeing closely on the PPI numbers and banks earnings releases later tonight. Nonetheless, we expect bargain hunting activities to emerge in Malaysia’s market. On the commodity, the Brent oil price inched higher with elevated geopolitical tension in the Middle East.

Sectors focus: Given the stabilised move in the US, we believe the buying interest may emerge in the Technology sector. Also, following the visit of PM Lee to Malaysia, signing of the JB-SG SEZ agreement and RTS Link ceremony, we believe trading interest may increase going forward within the Johor-related companies. We favour the Construction, Property, Building Material, Renewable Energy, as well as Utilities sectors. Meanwhile, the O&G sector could stay attractive with higher capex spending from Petronas in 2024.

Stocks to watch:

Consumer: CAB, FFB, PARKSON
Technology: GTRONIC, ITMAX, MI
Building Material: PWRWELL
Healthcare: KPJ
Others: KUB
Property: IOIPG
 

M+ Online Morning Market Buzz - 12 Jan 24

Dow Jones: 37,711.02 pts (+15.29pts, +0.04%)
⬆️ Resistance:  38600
⬇️ Support:  36600

FBM KLCI: 1,483.00 pts (-3.86pts, -0.26%)
⬆️ Resistance:  1540
⬇️ Support:  1450

HSI Index: 16,302.04 pts (+204.76pts, +1.27%)
⬆️ Resistance:  17100
⬇️ Support:  15800

Crude Palm Oil: RM3,796 (+RM2, +0.05%)
⬆️ Resistance:  3900
⬇️ Support:  3560

Brent Oil: $77.41 (+$0.61, +0.79%)
⬆️ Resistance:  80.90
⬇️ Support:  73.80

Gold: $2,028.91 (+$4.50, +0.22%)
⬆️ Resistance:  2110
⬇️ Support:  1980

**Source: Bloomberg, M+ Online**

M+ Online Technical Trading Stocks - 12 Jan 24

Stock Name: CAB (7174)
Entry: Buy above RM0.715
Target: RM0.750 (4.9%), RM0.780 (9.1%)
Stop: RM0.700 (-2.1%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: PARKSON (5657)
Entry: Buy above RM0.300
Target: RM0.320 (6.7%), RM0.340 (13.3%)
Stop: RM0.290 (-3.3%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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