M+ Online Morning Market Buzz - 5 Mar 24

Dow Jones: 38,989.83 pts (-97.55pts, -0.25%)
⬆️ Resistance:  40000
⬇️ Support:  38000

FBM KLCI: 1,539.27 pts (+1.25pts, +0.08%)
⬆️ Resistance:  1600
⬇️ Support:  1510

HSI Index: 16,595.97 pts (+6.53pts, +0.04%)
⬆️ Resistance:  17200
⬇️ Support:  16000

Crude Palm Oil: RM3,938 (-RM4, -0.10%)
⬆️ Resistance:  4080
⬇️ Support:  3790

Brent Oil: $83.55 (-$0.72, -0.86%)
⬆️ Resistance:  86.10
⬇️ Support:  80.20

Gold: $2,114.48 (+$31.56, +1.52%)
⬆️ Resistance:  2170
⬇️ Support:  1990

Market update – 5 Mar 24
Focusing On The AI-Theme

The FBM KLCI is trading within its sideways formation after the February earnings season. Despite the pullback on the US stock markets, investors were still chasing into the Technology stocks amid the AI-craze and SMCI is added to S&P500. The latest segment that got a boost is the memory chipmakers where high bandwidth memory solutions will be used in the latest Nvidia’s AI chips. Given this scenario, the upward tone will persist within the AI-related stocks for the near term. On the commodity market, the Brent traded sideways slightly below the USD83/bbl level as OPEC and its allies agreed to extend voluntary production cuts until end of June, while the Gold price has surged above USD2100 zone with the anticipation of interest rate cuts by the Fed in 2H2024. 

Sectors focus: We expect the broader market could stay muted for the near term in the absence of fresh leads, but commodities sectors such as the O&G, Gold and Plantation sectors may stay stronger in the near term as their underlying commodities prices were traded firmer. Meanwhile, we like stocks with high net cash and decent dividend yield, within the Furniture, Metal and Technology sector.

Stocks to watch: 

Building Material: CSCSTEL, PRESTAR
Consumer: CCK, SDS
Property: LBS, SUNWAY
Plantation: INNO
Technology: FPI
Construction: SSB8
Furniture: LIIHEN
Shipping: HARBOUR

Source: M+ Online

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