M+ Online Morning Market Buzz - 12 Mar 24

Dow Jones: 38,769.66 pts (+46.97pts, +0.12%)
⬆️ Resistance: 39800
⬇️ Support: 37700

FBM KLCI: 1,544.71 pts (+4.85pts, +0.31%)
⬆️ Resistance: 1580
⬇️ Support: 1490

HSI Index: 16,587.57 pts (+234.18pts, +1.43%)
⬆️ Resistance: 17000
⬇️ Support: 15800

Crude Palm Oil: RM4,131 (+RM7, +0.17%)
⬆️ Resistance: 4230
⬇️ Support: 3840

Brent Oil: $82.21 (+$0.13, +0.16%)
⬆️ Resistance: 85.80
⬇️ Support: 79.50

Gold: $2,182.75 (-$0.32, -0.01%)
⬆️ Resistance: 2240
⬇️ Support: 2070

Market update – 12 Mar 24
Muted Trading Ahead Of Economic Data

The FBM KLCI continues to rebound higher with buying support seen within selected Banking and Petronas-related heavyweights. In the US, Wall Street traded mixed prior to the data-heavy week as traders will be monitoring the (i) US CPI, (ii) US PPI, (iii) retail sales, (iv) unemployment claims, (v) Empire state manufacturing index and (vi) consumer sentiment. We believe the release of CPI and PPI data may sway the interest rate outlook. Given the neutral tone in the US, we believe buying interest on the local front may be mild. On the commodity markets, Brent oil is still trading sideways, ranging along USD81-83/bbl, while the Gold price has stagnated along USD2180 zone, but remains uptrend intact. For the FCPO, it has breached above the RM4,100 and the momentum is picking up.

Sectors focus: On the broader market, we expect buying support to persist on a milder tone. The iron ore futures plunges most since 2022 as inventories pile up in China and it may translate to potential buying support in iron and metal-related stocks. Meanwhile, we like selected O&G, Banking, Property, Construction, Consumer, Technology and Plantation could see buying support picking up. The Plantation sector will see firmer trading activities in view of stronger FCPO prices.

Stocks to watch:

Consumer: SDS, SUPERLN
O&G: GASMSIA, UZMA
Plantation: THPLANT
Construction: SUNCON
Technology: MPI
Property: LBS
Banking: MBSB
Utilities: BTECH

Source: M+ Online

M+ Online Technical Focus - 12 Mar 24
SUNCON: Solid Growth Within The Construction Segment

Trading Catalyst
• SUNCON delivered a growth in net profit for FY23.
• Outstanding orderbook stands at RM5.3bn as of 4Q23.
• Singapore’s HDB targets to launch about 19,600 Build-To-Order (BTO) flats may provide upside move towards the precast segment.
• Technically, SUNCON could be on the verge of a breakout, targeting RM2.73-2.75, with a LT target at RM2.85. Support is set around RM2.48-2.54, with a cut loss set around RM2.45

Technical View

(i)SUNCON (S: RM2.48-2.54, R: RM2.73-2.75, LT TP: RM2.85, CL: RM2.45)

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

M+ Online Technical Trading Stocks - 12 Mar 24

Stock Name: SDS (0212)
Entry: Buy above RM0.825
Target: RM0.860 (4.2%), RM0.880 (6.7%)
Stop: RM0.805 (-2.4%)
Shariah: Yes
Technical: Impending flag-formation breakout

Stock Name: GASMSIA (5209)
Entry: Buy above RM3.410
Target: RM3.550 (4.1%), RM3.600 (5.6%)
Stop: RM3.350 (-1.8%)
Shariah: Yes
Technical: Consolidation breakout

Source: Bloomberg, M+ Online

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