M+ Online Morning Market Buzz - 7 Feb 24

Dow Jones: 38,521.36 pts (+141.24pts, +0.37%)
⬆️ Resistance: 39600
⬇️ Support: 37400

FBM KLCI: 1,512.98 pts (+1.64pts, +0.11%)
⬆️ Resistance: 1560
⬇️ Support: 1480

HSI Index: 16,136.87 pts (+626.86pts, +4.04%)
⬆️ Resistance: 16500
⬇️ Support: 15100

Crude Palm Oil: RM3,867 (+RM24, +0.62%)
⬆️ Resistance: 3940
⬇️ Support: 3680

Brent Oil: $77.99 (+$0.77, +0.99%)
⬆️ Resistance: 84.60
⬇️ Support: 75.10

Gold: $2,036.14 (-$14.65, -0.72%)
⬆️ Resistance: 2110
⬇️ Support: 1980

Market update – 7 Feb 24
Positive Sentiment May Spillover To Local Front

The FBM KLCI continued to trade within a rangebound manner ahead of the Chinese New Year long weekend break. Meanwhile, Wall Street managed to gain momentum as the US Treasury yields slipped with investors pushing back the expectation of the Fed’s first rate cut by 2H24. On the Chinese stocks, we noticed a significant rebound after Beijing ramped up efforts to put a stall in the falling China and Hong Kong stock markets. With the rebound in global as well as China and Hong Kong stock markets, we believe the buying support may emerge this week on our local stock exchange. On the commodity markets, Brent oil inched higher as EIA expects the oil inventories to fall in the current quarter on reduced productions from OPEC+ and the US.

Sectors focus: Most of the sectors should be gaining momentum with the focus hovering within the key themes such as (i) the revival of KL-SG HSR mega infrastructure projects and (ii) the ongoing Johor-region developments. Also, we expect the LSS5 announcements may bode well for solar-related EPCC players on the exchange. We like Consumer and Telco for their defensive characteristics; the latter may benefit from increased data centres investments in Malaysia.

Stocks to watch:

Consumer: OF*, PWF, SDS
Property: IOIPG, PARAMON
Building Material: MNHLDG, WELLCAL
Healthcare: KPJ
Finance: AMBANK
Technology: EDARAN

Source: M+ Online

M+ Online Technical Trading Stocks - 7 Feb 24

Stock Name: PARAMON (1724)
Entry: Buy above RM1.010
Target: RM1.050 (4.0%), RM1.080 (6.9%)
Stop: RM0.985 (-2.5%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: IOIPG (5249)
Entry: Buy above RM2.170
Target: RM2.240 (3.2%), RM2.280 (5.1%)
Stop: RM2.120 (-2.3%)
Shariah: No
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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