M+ Online Morning Market Buzz - 19 Feb 24

Dow Jones: 38,627.99 pts (-145.13pts, -0.37%)
⬆️ Resistance:  39800
⬇️ Support:  37300

FBM KLCI: 1,533.55 pts (+5.17pts, +0.34%)
⬆️ Resistance:  1570
⬇️ Support:  1490

HSI Index: 16,339.96 pts (+395.33pts, +2.48%)
⬆️ Resistance:  16800
⬇️ Support:  15200

Crude Palm Oil: RM3,809 (-RM12, -0.31%)
⬆️ Resistance:  4050
⬇️ Support:  3730

Brent Oil: $83.47 (+$0.61, +0.74%)
⬆️ Resistance:  85.40
⬇️ Support:  79.20

Gold: $2,013.59 (+$12.07, +0.61%)
⬆️ Resistance:  2080
⬇️ Support:  1950

Market update – 19 Feb 24
Uptrend Move To Sustain On KLCI

The FBM KLCI continued to charge higher for the week and closed firmly above 1,530 led by buying support within selected Banking and Transportation & Logistics heavyweights. However, the US stock markets took a beating after the PPI data came in hotter-than-expected, which pushed back hopes for an imminent interest rate cut by the Fed. Nevertheless, we expect buying interest to prevail within the local front, supported by the upcoming earnings season. On the commodity market, the Brent oil price closed higher for the session with the ongoing concerns over geopolitical tension. 

Sectors focus: As we are heading into a busy corporate earnings season, we expect traders to look for opportunities within the fundamentally growing companies, we like the Consumer and O&G sectors. Meanwhile, trading themes such as the potential revival of KL-SG HSR and several construction projects may bode well for the Construction, Property, Utilities as well as Renewable Energy sectors. Besides, the calling for proposals to design, implement and maintain the NIISe last year may expect trading interest within the Technology sector as more than 10 companies have submitted their proposals. 

Stocks to watch: 

Consumer: CCK, PARKSON
Property: KSL, MAHSING
NFO: SPTOTO
Transportation: HARBOUR
Utilities: RANHILL
Technology: INARI, KGB
Automotive: MBMR

Source: M+ Online

M+ Online Technical Focus - 19 Feb 24
MBMR: Healthy Near-Term Vehicle Demand

Trading Catalyst
• MBMR 3Q23 earnings rebounded from a weaker 2Q23.
• Healthy near-term vehicle demand for Perodua may sustain
• Projected dividend yield at 9.9% for FY23, Based on Bloomberg
"• Technically, MBMR has experienced a breakout above RM4.62 and last closed at
RM4.65. Monitor for a breakout, targeting RM4.95-5.00, with a LT target at RM5.10.
Support is located around RM4.45-4.50, while cut loss is at RM4.40."

Technical View

(i)MBMR (S: RM4.95-5.00, R: RM4.45-4.50, LT TP: RM5.10, CL: RM4.40)

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

Source: Bloomberg, M+ Online

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