M+ Online Morning Market Buzz - 16 Jan 24

Dow Jones: 37,592.98 pts (-118.04pts, -0.31%)
⬆️ Resistance: 38600
⬇️ Support: 36700

FBM KLCI: 1,501.11 pts (+13.77pts, +0.93%)
⬆️ Resistance: 1540
⬇️ Support: 1460

HSI Index: 16,216.33 pts (-28.25pts, -0.17%)
⬆️ Resistance: 16800
⬇️ Support: 15800

Crude Palm Oil: RM3,821 (+RM21, +0.55%)
⬆️ Resistance: 3960
⬇️ Support: 3560

Brent Oil: $78.29 (+$0.46, +0.59%)
⬆️ Resistance: 82.40
⬇️ Support: 74.50

Gold: $2,056.55 (+$20.15, +1.00%)
⬆️ Resistance: 2110
⬇️ Support: 1980

Market update – 16 Jan 24
Crossing The Significant 1,500 Level

The FBM KLCI experienced a strong flag formation breakout led by significant buying interest in YTL-related utilities and banking heavyweights. Meanwhile, the US was closed for holiday break. Events that investors will be watching out this week include (i) earnings releases from Goldman Sachs and Morgan Stanley, (ii) monthly retail sales in the US, (iii) US unemployment claims and (iv) China Industrial Production data. On the local market, we expect overall sentiment to stay positive following the announcement of 7 consortia submitted RFI proposal for KL-SG HSR project. On the commodity markets, the Brent oil price gained marginally higher amid rising tension in the Red Sea region.

Sectors focus: With the potential revival of the KL-SG HSR project, we opine that the overall Construction and Building Material sectors will be positive in the near term. We also favour the Property sector, where companies with land banks along the project may benefit. Meanwhile, the recent signing of the JB-SG SEZ agreement could provide upside towards investments in the Johor-region and may benefit the Renewable Energy and Water segments in the future.

Stocks to watch:

O&G: DELEUM, UZMA
Property: AVALAND, KPPROP
Building Material: PWRWELL
Construction: ECONBHD, KERJAYA
Consumer: CCK, TEOSENG, PPHB
Finance: AMBANK, TAKAFUL
Technology: INARI

Source: M+ Online

M+ Online Technical Focus - 16 Jan 24
Avaland Berhad:Focus On Quality, Spurring Stronger Sales

Trading Catalyst
· In 3Q23 AVALAND reported a net profit of RM17.2m from RM6.2m (+127.5% YoY)
· Property outlook to be boosted by easing interest rates and government initiatives.
· New management team to direct AVALAND to a stronger outlook
· Technically, AVALAND has experienced a breakout above RM0.25 and closed at
RM0.265. Monitor for a breakout, targeting RM0.285-0.29, with a LT target at
RM0.325. Support is located around RM0.245-0.25, while cut loss is at RM0.24. "

Technical View

(i) AVALAND (S: RM0.245-0.25, R: RM0.285-0.29, LT TP: RM0.325, CL: RM0.24)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

Source: Bloomberg, M+ Online

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.