M+ Online Morning Market Buzz - 18 Jan 24

Dow Jones: 37,266.67 pts (-94.45pts, -0.25%)
⬆️ Resistance: 38600
⬇️ Support: 36400

FBM KLCI: 1,491.21 pts (-2.66pts, -0.18%)
⬆️ Resistance: 1540
⬇️ Support: 1460

HSI Index: 15,276.90 pts (-589.02pts, -3.71%)
⬆️ Resistance: 16800
⬇️ Support: 14900

Crude Palm Oil: RM3,826 (+RM11, +0.29%)
⬆️ Resistance: 3970
⬇️ Support: 3700

Brent Oil: $78.29 (-$0.16, -0.20%)
⬆️ Resistance: 82.40
⬇️ Support: 75.00

Gold: $2,006.25 (-$28.11, -1.35%)
⬆️ Resistance: 2110
⬇️ Support: 1970

Market update – 18 Jan 24
Negative Sentiment To Prevail

The FBM KLCI traded lower for the second session as the market sentiment remains negative as we believe margin calls were activated in most of the counters after several companies hitting limit-down conditions. For the upcoming session, we believe the negative sentiment could persist on the fundamentally weak companies, but bargain hunting activities will be seen in solid companies. Meanwhile, on Wall Street, the 3 major indexes ended lower following a spike in US Treasury yield after a stronger-than-expected retail sale report. This has contributed to lower probability of the Fed cutting its key policy rate in March, down from 66% to 56% based on Bloomberg. On the commodity markets, the Brent oil price traded marginally higher around uSD78, despite weak China data.

Sectors focus: With several companies hitting limit-down, we opine that traders will be focusing on fundamentally solid companies going forward. We expect the ongoing theme on the KL-SG HSR, coupled with the Johor-region catalysts may be the winners for 2024, thus trading activities could focus on the Construction, Property, Building Material as well as the Utilities companies at least for the near term. Meanwhile, we like the defensive Consumer sector as we think the overall consumption is stable and growing at this juncture.

Stocks to watch:

Consumer: CAB, HUPSENG, MSM
Property: AME, LBS, MAHSING
O&G: DELEUM
Healthcare: KPJ
Finance: AMBANK
Transportation & Logistics: AIRPORT

Source: M+ Online

M+ Online Technical Trading Stocks - 18 Jan 24

Stock Name: MSM (5202)
Entry: Buy above RM1.830
Target: RM1.950 (6.6%), RM2.000 (9.3%)
Stop: RM1.780 (-2.7%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: HUPSENG (5024)
Entry: Buy above RM0.810
Target: RM0.840 (3.7%), RM0.880 (8.6%)
Stop: RM0.790 (-2.5%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Source: Bloomberg, M+ Online

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