M+ Online Morning Market Buzz - 6 Feb 24

Dow Jones: 38,380.12 pts (-274.30pts, -0.71%)
⬆️ Resistance: 39600
⬇️ Support: 37400

FBM KLCI: 1,511.34 pts (-5.24pts, -0.35%)
⬆️ Resistance: 1560
⬇️ Support: 1480

HSI Index: 15,510.01 pts (-23.55pts, -0.15%)
⬆️ Resistance: 16300
⬇️ Support: 15100

Crude Palm Oil: RM3,801 (-RM1, -0.03%)
⬆️ Resistance: 4040
⬇️ Support: 3680

Brent Oil: $77.33 (+$0.58, +0.75%)
⬆️ Resistance: 85.00
⬇️ Support: 75.10

Gold: $2,025.11 (-$15.23, -0.74%)
⬆️ Resistance: 2110
⬇️ Support: 1980

Market update – 6 Feb 24
Slight Pause Before Another Up Run

The FBM KLCI continued to trade in a sideways manner for the past 4 trading days as profit taking activities kicked in within the Utilities heavyweights ahead of the Chinese New Year long weekend break. Meanwhile, the US stock markets ended on a negative tone with the market pricing in further timeline on the US interest rate cuts after Jerome Powell’s speech offsetting the higher-than-expected US ISM Services PMI data. Meanwhile, the sluggish sentiment in China could further drag the situation on the local front and we believe the profit taking activities could persist over the near term. On the commodity markets, Brent oil climbed after a 4-day drop on the back of rising geopolitical tensions following the US air strikes.

Sectors focus: Although most of the sector indices are turning weak at this juncture on the back of the profit taking activities, we expect the bargain hunting activities will take place within the Construction, Property and Building Material segments on the back of the following trading catalysts, namely (i) the potential revival of KL-SG HSR and (ii) ongoing Johor-region developments. Meanwhile, we like Consumer and Telco for their defensive characteristics.

Stocks to watch:

Consumer: 3A, PWF, TEOSENG
Property: IOIPG, PARAMON
Healthcare: KAREX, TMCLIFE
Finance: ABMB, MNRB
Transportation & Logistics: WPRTS

Source: M+ Online

M+ Online Technical Trading Stocks - 6 Feb 24

Stock Name: 3A (0012)
Entry: Buy above RM0.855
Target: RM0.885 (3.5%), RM0.900 (5.3%)
Stop: RM0.825 (-3.5%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: PARAMON (1724)
Entry: Buy above RM0.985
Target: RM1.020 (3.6%), RM1.050 (6.6%)
Stop: RM0.970 (-1.5%)
Shariah: Yes
Technical: Impending flag-formation breakout

Source: Bloomberg, M+ Online

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