M+ Online Morning Market Buzz - 25 Mar 24

Dow Jones: 39,475.90 pts (-305.47pts, -0.77%)
⬆️ Resistance:  40700
⬇️ Support:  38000

FBM KLCI: 1,542.39 pts (+0.98pts, +0.06%)
⬆️ Resistance:  1590
⬇️ Support:  1510

HSI Index: 16,499.47 pts (-363.63pts, -2.16%)
⬆️ Resistance:  17400
⬇️ Support:  16100

Crude Palm Oil: RM4,188 (-RM61, -1.44%)
⬆️ Resistance:  4410
⬇️ Support:  4100

Brent Oil: $85.43 (-$0.35, -0.41%)
⬆️ Resistance:  89.50
⬇️ Support:  83.40

Gold: $2,165.44 (-$15.89, -0.73%)
⬆️ Resistance:  2270
⬇️ Support:  2110

Market update – 25 Mar 24
Optimism On AI Theme Persisted

Last week, the FBM KLCI rebounded marginally for 2 consecutive days, but closing the week lower by 0.67%; as attention was shifted to FBM Small Cap, rallying by 1.69%. In the US, Nasdaq traded at all-time-high position, while DJI and S&P500 closed higher for the week as the market could be pricing in dovish statements from the Fed as 3 rate cuts are anticipated, while persisted optimism over AI theme supported the overall market’s movements. Hence, given this setup, we believe buying support will extend to the local exchange. On the commodity markets, Brent oil pulled back but hovering above US85, while the crude palm oil has hit resistance along RM4,300 and traded lower for the near term. Besides, the gold price maintained above USD2,160 zone. 
 
Sectors focus: Given the ongoing optimism on the AI theme and Technology sector continues to stay elevated, we believe the buying interest will spillover towards stocks on the local front; we like INARI, UNISEM, FRONTKN, FPI and MPI. Meanwhile, YINSON registered a good set of earnings, while VELESTO won a contract extension of about RM1.26bn, hence we expect more robust trading activities within the O&G sector. Besides, we like Utilities, Construction, Consumer, Packaging and Solar.

Stocks to watch: 

O&G: GASMSIA, PERDANA, VELESTO
Utilities: RANHILL
Solar: SAMAIDEN
Consumer: SDS
Construction: HSSEB
Technology: FPI, MPI
Packaging: PPHB

Source: M+ Online

M+ Online Technical Trading Stocks - 25 Mar 24

Stock Name: RANHILL (5272)
Entry: Buy above RM1.140
Target: RM1.190 (4.4%), RM1.220 (7.0%)
Stop: RM1.100 (-3.5%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: SDS (0212)
Entry: Buy above RM0.840
Target: RM0.880 (4.8%), RM0.920 (9.5%)
Stop: RM0.815 (-3.0%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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