M+ Online Morning Market Buzz - 19 Mar 24

Dow Jones: 38,790.43 pts (+75.66pts, +0.20%)
⬆️ Resistance:  40000
⬇️ Support:  37900

FBM KLCI: 1,553.64 pts (+0.81pts, +0.05%)
⬆️ Resistance:  1590
⬇️ Support:  1510

HSI Index: 16,737.12 pts (+16.23pts, +0.10%)
⬆️ Resistance:  17600
⬇️ Support:  16300

Crude Palm Oil: RM4,236 (+RM1, +0.02%)
⬆️ Resistance:  4420
⬇️ Support:  4040

Brent Oil: $86.89 (+$1.55, +1.82%)
⬆️ Resistance:  89.00
⬇️ Support:  80.10

Gold: $2,160.36 (+$0.86, +0.04%)
⬆️ Resistance:  2230
⬇️ Support:  2110

Market update – 19 Mar 24
All Eyes On The FOMC Meeting

The FBM KLCI traded flat for the session as Telco heavyweights were beaten down.  Meanwhile, overall US stock markets headed higher as investors digested news from Nvidia’s AI conference and traded more positively ahead of the FOMC meeting that will be concluding this week. However, based on Bloomberg, the market is positioning for a delayed rate cut, probably by 2H2024. Given the more positive sentiment in the US, we believe buying support could spillover towards stocks on the local front. On the commodity markets, Brent oil rose strongly, near a 5-month high amid heightened geopolitical tensions after Ukraine attacks on Russian refineries, while China reported better-than-expected economic data. 
 
Sectors focus: Still, we like the commodities sector like the O&G sector as Brent oil is trading firmly above the USD85/bbl level. Also, we noticed significant momentum building up within the construction sector, with the resurfacing of KL-SG HSR over the weekend. We expect smaller contractors that have positive QoQ growth in their recent earnings may be a more decent pick. Besides, we like selected Technology and Packaging stocks such as FPI and PPHB at least for the near term.  

Stocks to watch: 

Construction: EPICON, FAJAR, GADANG
O&G: DAYANG, GASMSIA, VELESTO
Technology: FPI, UNISEM
Packaging: PPHB
Shipping: WPRTS
Gaming: GENM

Source: M+ Online

M+ Online Technical Trading Stocks - 19 Mar 24

Stock Name: FAJAR (7047)
Entry: Buy above RM0.335
Target: RM0.355 (6.0%), RM0.365 (9.0%)
Stop: RM0.320 (-4.5%)
Shariah: Yes
Technical: Bullish engulfing candle

Stock Name: VELESTO (5243)
Entry: Buy above RM0.290
Target: RM0.320 (10.3%), RM0.340 (17.2%)
Stop: RM0.280 (-3.4%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Source: Bloomberg, M+ Online

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