M+ Online Morning Market Buzz - 4 Mar 24

Dow Jones: 39,087.38 pts (+90.99pts, +0.23%)
⬆ Resistance:  40100
⬇ Support:  38000

FBM KLCI: 1,538.02 pts (-13.42pts, -0.87%)
⬆ Resistance:  1600
⬇ Support:  1510

HSI Index: 16,589.44 pts (+78.00pts, +0.47%)
⬆ Resistance:  17200
⬇ Support:  16000

Crude Palm Oil: RM3,966 (-RM4, -0.10%)
⬆ Resistance:  4080
⬇ Support:  3760

Brent Oil: $83.55 (+$0.05, +2.00%)
⬆ Resistance:  86.10
⬇ Support:  79.40

Gold: $2,082.92 (+$2.23, +0.02%)
⬆ Resistance:  2140
⬇ Support:  1990

Market update – 4 Mar 24
US Still In The Cloud Nine After Earnings Season

After the corporate earnings season, and the FBM KLCI hitting the resistance along 1,559 last week, profit taking activities have emerged after the MSCI rebalancing activities. Meanwhile, on Wall Street, the 3 major indices have surged again; the S&P500 rose towards new highs after the Core PCE data came in within expectations and investors were focusing on the AI trend and sustainable earnings going forward. We believe the positive sentiment may spillover towards stocks on the local front this week. On the commodity market, the Brent oil price turned higher above USD83/bbl ahead of the OPEC meeting this week, while the Gold price has experienced a solid breakout above USD2050 after softer factory sector output. 

Sectors focus: This week, we expect traders to look at the commodities sectors after a firmer trend on Brent oil and Gold prices; the O&G may continue to charge higher, while Gold-related stocks may trend positively this week. Also, the Plantation sector may ride higher in tandem with the FCPO price hitting the RM4000 range. Meanwhile, we like the Furniture sector in view of the weak ringgit position – LIIHEN’s prospective dividend yield stood more than 6%.

Stocks to watch: 

O&G: GASMSIA, UZMA, WASCO
Technology: FPI, UNISEM
Building Material: KIALIM, PRESTAR
Industrial: BTECH
Consumer: OFI
Plantation: INNO

Source: M+ Online

M+ Online Technical Focus - 4 Mar 24
FRONTKN: Anticipating A Growth In The Semiconductor Segment

Trading Catalyst
• FRONTKN delivered higher net profit QoQ in 4Q23.
• Global semiconductor industry is expected to experience a double-digit growth.
• Better utilisation rate of the new facility in Taiwan.
• Technically, FRONTKN last closed at RM3.65. Monitor for a breakout, targeting RM3.82-3.90, with a LT target at RM4.05. Support is located around RM3.55-3.60, while cut loss is at RM3.52.

Technical View

(i)MBMR (S: RM3.55-3.60, R: RM3.82-3.90, LT TP: RM4.05, CL: RM3.52)

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

Source: Bloomberg, M+ Online

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