M+ Online Morning Market Buzz - 15 Mar 24

Dow Jones: 38,905.66 pts (-137.66pts, -0.35%)
⬆️ Resistance:  40000
⬇️ Support:  37800

FBM KLCI: 1,543.75 pts (+5.62pts, +0.37%)
⬆️ Resistance:  1590
⬇️ Support:  1510

HSI Index: 16,961.66 pts (-120.45pts, -0.71%)
⬆️ Resistance:  17600
⬇️ Support:  16000

Crude Palm Oil: RM4,295 (+RM8, +0.19%)
⬆️ Resistance:  4410
⬇️ Support:  3970

Brent Oil: $85.42 (+$1.39, +1.65%)
⬆️ Resistance:  87.50
⬇️ Support:  79.50

Gold: $2,162.19 (-$0.56, -0.03%)
⬆️ Resistance:  2240
⬇️ Support:  2110

Market update – 15 Mar 24
Commodities Spike May Bode Well For Bursa Exchange

The FBM KLCI closed higher in tandem with most of the Asian stock markets’ performances as led by Plantation and Telco heavyweights. Meanwhile, Wall Street ended softer as the core PPI and PPI data spiked 0.3% and 0.6% MoM against forecasts of 0.2% and 0.3%, respectively, while core retail sales rose 0.3% MoM as compared to forecast of 0.5%. Most of the data could point to slower growth in consumption activities and slightly more hawkish tone by the Fed, which may contribute to a delay in interest rate cut going forward. However, we expect the firmer commodity prices should provide support towards stocks on the local front. On the commodity markets, Brent oil inched higher above the USD85/bbl level due to an improved US demand outlook following a higher-than-expected decline in US crude inventories as well as ongoing geopolitical risk.

Sectors focus: Despite the slight decline in the US, we expect the positive sentiment on the local front to sustain and traders will be focusing on commodities related stocks within the Plantation and O&G amid the firm underlying commodities performances. Besides, we like the Construction and Property sectors for the potential revival of KL-SG HSR, while investors may continue to position within the defensive Consumer sector. 

Stocks to watch: 

Building material: *CSCSTEL*, *SCGBHD*
Consumer: CCK, *SUPERLN*
O&G: *UZMA*, VELESTO
Utilities: *BTECH*
Construction: KERJAYA, SUNCON
Conglomerate: SIME

Source: M+ Online

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