M+ Online Morning Market Buzz - 27 Feb 24

Dow Jones: 39,069.23 pts (-62.30pts, -0.16%)
⬆ Resistance: 38800
⬇ Support: 39200

FBM KLCI: 1,547.60 pts (-1.51pts, -0.10%)
⬆ Resistance: 1555
⬇ Support: 1535

HSI Index: 16,634.74 pts (-91.12pts, -0.54%)
⬆ Resistance: 16800
⬇ Support: 16450

Crude Palm Oil: RM3,863 (+RM11, +0.28%)
⬆ Resistance: 3880
⬇ Support: 3840

Brent Oil: $82.53 (+$0.91, +1.11%)
⬆ Resistance: 83.00
⬇ Support: 81.00

Gold: $2,031.24 (+$1.11, +0.05%)
⬆ Resistance: 2050
⬇ Support: 2020

Market update – 27 Feb 24
Earnings Season To Be Focused

The FBM KLCI slid lower for the session dragged by Gaming heavyweights. Meanwhile, the US stock markets ended on a negative tone as the market is taking a cautious stance for the near term ahead of several economic data to gauge the Fed’s easing cycle going forward; this week data include (i) US GDP (Wed), (ii) Core PCE (Thu), (iii) unemployment claims (Thu) and (iv) US Manufacturing PMI (Fri). Meanwhile, we expect buying support to return on the local front after several consolidation days as corporate earnings will be focused. On the commodity market, the Brent oil price hovered around USD80-83/bbl as concerns over the Red Sea persisted. 

Sectors focus: YTL related companies could remain in focus as they are deemed cheap in terms based on forward valuations. Meanwhile, we like the Technology sector with the release of stronger results from D&O amid stronger demand from the automotive segment. Also, a strong set of results from PPHB could provide an upside opportunity for the Packaging industry. Still, we favour the Consumer and O&G sectors as ABLEGLOB, LAYHONG and DELEUM recorded solid growth this quarter.

Stocks to watch: 

Transportation: SYGROUP
Metal: CSCSTEL
O&G: ARMADA
Healthcare: KAREX
Property: UEMS
Consumer: HUPSENG
Building Material: PWRWELL
Technology: CTOS
Insurance: TAKAFUL
Others: NGGB

Source: M+ Online

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