M+ Online Morning Market Buzz - 22 Mar 24

Dow Jones: 39,781.37 pts (+269.24pts, +0.68%)
⬆️ Resistance:  40700
⬇️ Support:  37900

FBM KLCI: 1,541.41 pts (+5.62pts, +0.37%)
⬆️ Resistance:  1590
⬇️ Support:  1510

HSI Index: 16,863.10 pts (+320.03pts, +1.93%)
⬆️ Resistance:  17400
⬇️ Support:  16200

Crude Palm Oil: RM4,249 (-RM8, -0.19%)
⬆️ Resistance:  4420
⬇️ Support:  4120

Brent Oil: $85.78 (-$0.17, -0.20%)
⬆️ Resistance:  89.50
⬇️ Support:  83.00

Gold: $2,181.33 (-$0.20, -0.01%)
⬆️ Resistance:  2270
⬇️ Support:  2110

Market update – 22 Mar 24
Rate Cut Optimism Boost Sentiment In Stocks

The FBM KLCI rose after a two-day pullback lifted by selected heavyweights within Telco, Banking and Plantation. Again, in the US stock markets, the sentiment was positive following the dovish statements from the Fed’s FOMC meeting and contributed to an extended rally within the Technology sector; dot plot expects 3 rate cuts. With this positive trading activity in the US, we opine that the buying support should spillover to stocks on the local front. On the commodity markets, Brent oil retreated for the second day, but still hovering above the USD84/bbl, while the crude palm oil traded sideways within RM4,200-4,300. Besides, the Gold prices surged towards USD2,222 before closing below USD2,200 level. 
 
Sectors focus: We think the buying interest may continue to emerge within the Technology sector, taking cue from the US stock markets; we like INARI, UNISEM and MPI. Meanwhile, we favour the commodity-related sectors such as O&G, Plantation and Gold with the anticipation of a softer interest rates environment going forward. Besides, on the local catalysts, we expect Johor-theme, KL-SG HSR as well as NETR will provide upside opportunities within Construction, Property and Renewable Energy. 

Stocks to watch: 

Technology: *FRONTKN*, INARI, UNISEM
Solar-related: *SAMAIDEN*, SLVEST
Property: *IWCITY*
Finance: *MBSB*
Construction: *EPICON*
Plantation: *CEPAT*, SOP
Consumer: ABLEGLOB

Source: M+ Online

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