M+ Online Morning Market Buzz - 21 Mar 24

Dow Jones: 39,512.13 pts (+401.37pts, +1.03%)
⬆️ Resistance:  40400
⬇️ Support:  37900

FBM KLCI: 1,535.79 pts (-9.17pts, -0.59%)
⬆️ Resistance:  1590
⬇️ Support:  1510

HSI Index: 16,543.07 pts (+13.59pts, +0.08%)
⬆️ Resistance:  17600
⬇️ Support:  16200

Crude Palm Oil: RM4,272 (+RM41, +0.96%)
⬆️ Resistance:  4420
⬇️ Support:  4110

Brent Oil: $85.95 (-$1.43, -1.64%)
⬆️ Resistance:  89.50
⬇️ Support:  82.40

Gold: $2,186.39 (+$12.63, +0.58%)
⬆️ Resistance:  2240
⬇️ Support:  2110

Market update – 21 Mar 24
Federal Reserve Kept Interest Rate Unchanged

The FBM KLCI traded another day lower with further profit taking activities seen across Banking heavyweights. Meanwhile in the US, all the 3 major benchmark indices surged towards their respective all-time-highs, as the Fed concluded the FOMC meeting, keeping the interest rate unchanged at 5.25-5.55%. Also, the Fed pencilled in at least 3 rate cuts by 2024. Given this positive sentiment, we believe buying interest may spillover towards stocks on the local front. On the commodity markets, Brent oil retreated, snapping a 5-day winning streak, but still hovering above USD86/bbl as EIA weekly survey suggested the US oil stocks fell by 2m barrels last week. For CPO, it trended higher, securing above the RM4,300 level. 
 
Sectors focus: Tracking the US, we expect buying support to emerge within the Technology sector at least for the near term. Meanwhile, we still favour the O&G sector with the oil price ranging above USD86. Besides, we believe traders will revisit the Plantation sector as the crude palm oil surged above RM4,300. Other sectors that investors may look into include Consumer, Solar, Telco, Packaging as well as KL-SG HSR beneficiaries such as Construction and Property.  

Stocks to watch: 

Technology: FPI, UNISEM
Building Material: PA SUPERLN
Construction: HSSEB
Packaging: PPHB
Telco: REDTONE
Consumer: OFI
O&G DAYANG
Solar-related: SAMAIDEN
Utility: BTECH

Source: M+ Online

M+ Online Technical Trading Stocks - 21 Mar 24

Stock Name: SUPERLN (7235)
Entry: Buy above RM0.935
Target: RM0.980 (4.8%), RM1.000 (7.0%)
Stop: RM0.900 (-3.7%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: REDTONE (0032)
Entry: Buy above RM1.050
Target: RM1.100 (4.8%), RM1.150 (9.5%)
Stop: RM1.010 (-3.8%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+ Online

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