M+ Online Morning Market Buzz - 26 Jan 24

Dow Jones: 38,049.13 pts (+242.74pts, +0.64%)
⬆ Resistance: 38900
⬇ Support: 36800

FBM KLCI: 1,504.10 pts (+7.99pts, +0.53%)
⬆ Resistance: 1540
⬇ Support: 1450

HSI Index: 16,211.96 pts (+312.09pts, +1.96%)
⬆ Resistance: 16600
⬇ Support: 14500

Crude Palm Oil: RM3,994 (+RM46, +1.17%)
⬆ Resistance: 4080
⬇ Support: 3810

Brent Oil: $82.43 (+$2.39, +2.99%)
⬆ Resistance: 84.30
⬇ Support: 76.30

Gold: $2,020.84 (+$6.95, +0.35%)
⬆ Resistance: 2090
⬇ Support: 1980

Market update – 26 Jan 24
Buying Interest May Spillover

The FBM KLCI surged for the fourth session and once again crossed and closed above the 1,500 psychological level. We believe the overall sentiment on the local front may stay bullish in tandem with the Hang Seng Index spiking above the 16,000 level following the news where China ramps up stimulus and PBOC announces policy easing measures. Also, the US stock markets continued its bullish tone following the release of better-than-expected GDP data. We believe the market will be focusing on corporate earnings and next week’s FOMC meeting. On the commodity markets, Brent oil headed above USD80/bbl mark as EIA indicated that the US inventories were declining.

Sectors focus: Given the solid close on Hong Kong and the US markets, we believe buying support may persist on the local front, especially within the Technology sector. Meanwhile, the news on BLAND, IJM, MRCB and KTMB to join forces to bid for the KL-SG HSR job may provide support towards the Construction, Building Material and Property sectors. Besides, we believe the Transportation & Logistics sector may see trading opportunities with the ongoing tension in the Red Sea.

Stocks to watch:

O&G: ARMADA, MUHIBAH, UZMA
Plantation: TAANN, INNO
Construction: ECONBHD
Finance: CIMB
Consumer: SDS
Building Material: MNHLDG
Property: AVALAND

Source: M+ Online

M+ Online Technical Focus - 26 Jan 24
PWRWELL: Powering Up With The Regional Growth

Trading Catalyst
· In 2Q24, PWRWELL’s net profit grew to RM2.42m from RM1.15m (+109% YoY).
· The Group has established an assembly plant in Indonesia to support the Indonesian market.
· PWRWELL is putting initiatives into cost optimisation to improve net margins.
· Technically, PWRWELL may experience a breakout above RM0.25. Monitor for a breakout, targeting RM0.275-0.28, with a LT target at RM0.29. Support is located around RM0.24-0.245, while cut loss is at RM0.23.

Technical View

(i) PWRWELL (S: RM0.24-0.245, R: RM0.275-0.28, LT TP: RM0.29, CL: RM0.23)

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

Source: Bloomberg, M+ Online

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