M+ Online Morning Market Buzz - 19 Jan 24

Dow Jones: 37,468.61 pts (+201.94pts, +0.54%)
⬆️ Resistance: 38600
⬇️ Support: 36400

FBM KLCI: 1,479.18 pts (-12.03pts, -0.81%)
⬆️ Resistance: 1540
⬇️ Support: 1450

HSI Index: 15,391.79 pts (+114.89pts, +0.75%)
⬆️ Resistance: 16800
⬇️ Support: 14900

Crude Palm Oil: RM3,885 (-RM10, -0.26%)
⬆️ Resistance: 3990
⬇️ Support: 3710

Brent Oil: $77.88 (+$1.08, +1.39%)
⬆️ Resistance: 82.40
⬇️ Support: 75.00

Gold: $2,023.34 (+$17.09, +0.85%)
⬆️ Resistance: 2110
⬇️ Support: 1970

Market update – 19 Jan 24
Bargain Hunting Activities To Emerge

The FBM KLCI ended lower for the third session given the market sentiment was affected by margin calls in small cap and lower liners; the FBM Small cap dived 2.07%, while FBM ACE plunged 5.2%. However, the US stock markets rebounded after the result release from TSMC, where the outlook is positive and projected more than 20% growth amid booming demand for high-end chips used in AI application. This has caused the jump in Nvidia, AMD, Broadcom and others. Also, Apple was upgraded to Buy from Hold by BofA. We believe the overall sentiment in the US may spillover towards stocks on the local front after the recent selloffs. On the commodity markets, the Brent oil price traded slightly higher around USD79, as inventories in the US fell more-than-expected.

Sectors focus: Given the rebound on Wall Street, we expect buying interest to spillover towards stocks on the local front within the Technology sector. Meanwhile, we expect small cap and lower liners to take further beating in the near term with the negative sentiment across the board. However, we opine that fundamentally solid companies with the trading catalysts revolving the (i) KL-SG HSR, (ii) Johor-region and (iii) easing requirements of MM2H may be focused.

Stocks to watch:

Consumer: HUPSENG, MSM, UCHITEC
Property: ECOWLD, SCIENTX
Building Material: HUMEIND
Technology: MI
Plantation: JTIASA
Finance: AMBANK
O&G: WASCO

Source: M+ Online

M+ Online Technical Trading Stocks - 19 Jan 24

Stock Name: ECOWLD (8206)
Entry: Buy above RM1.200
Target: RM1.250 (4.2%), RM1.300 (8.3%)
Stop: RM1.180 (-1.7%)
Shariah: Yes
Technical: Impending flag-formation breakout

Stock Name: MI (5286)
Entry: Buy above RM1.910
Target: RM1.980 (3.7%), RM2.060 (7.9%)
Stop: RM1.850 (-3.1%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Source: Bloomberg, M+ Online

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