M+ Online Morning Market Buzz - 26 Feb 24

Dow Jones: 39,131.53 pts (+62.42pts, +0.16%)
⬆ Resistance: 38800
⬇ Support: 39300

FBM KLCI: 1,549.11 pts (+3.62pts, +0.23%)
⬆ Resistance: 1520
⬇ Support: 1570

HSI Index: 16,725.86 pts (-17.09pts, -0.10%)
⬆ Resistance: 16900
⬇ Support: 16500

Crude Palm Oil: RM3,853 (+RM14, +0.36%)
⬆ Resistance: 3800
⬇ Support: 3900

Brent Oil: $81.62 (-$0.07, -0.09%)
⬆ Resistance: 80.00
⬇ Support: 83.00

Gold: $2,035.40 (-$0.87, -0.04%)
⬆ Resistance: 2050
⬇ Support: 2020

Market update – 26 Feb 24
Overall Sentiment Still Positive

The FBM KLCI ended on a positive tone last week as the results released from YTL-related were fairly above market’s expectations, translating to further buying support in the Utilities sector. Meanwhile, the US stock market traded mixed for the session as the Technology sector took a breather following Nvidia’s results. Several events that the market may be monitoring this week include (i) US GDP, (ii) Core PCE, (iii) unemployment claims and (iv) US Manufacturing PMI data. Closer to home, buying interest should be sustained, following last week’s momentum as we enter the full-blown corporate earnings season this week. On the commodity market, the Brent oil price traded around USD81/bbl.

Sectors focus: Still, the traders may continue to chase into the Utilities sector as YTLs are deemed attractive in terms of their valuations. Meanwhile, we noticed the Technology sector’s results were slightly positive last week, and we believe it may turn out stronger from 2Q onwards. Besides, we expect strong set results from TM may provide support towards the Telco sector. We opine that there might be more earnings surprises from the Consumer and O&G sectors on the back of normalising costs and firmer crude oil price, respectively.

Stocks to watch:

Consumer: CCK, OFI
Utilities: RANHILL
Transportation: SYGROUP
O&G: DAYANG, NAIM
Automotive: BAUTO
Property: KSL
Building Material: MCEMENT
Insurance: TAKAFUL

Source: M+ Online

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