M+ Online Morning Market Buzz - 1 Apr 24

Dow Jones: 39,807.37 pts (+47.29pts, +0.12%)
⬆️ Resistance: 40700
⬇️ Support: 38500

FBM KLCI: 1,536.07 pts (+5.47pts, +0.36%)
⬆️ Resistance: 1580
⬇️ Support: 1500

HSI Index: 16,541.42 pts (+148.58pts, +0.91%)
⬆️ Resistance: 17100
⬇️ Support: 16100

Crude Palm Oil: RM4,194 (+RM58, +1.40%)
⬆️ Resistance: 4370
⬇️ Support: 4050

Brent Oil: $87.00 (+$1.59, +1.86%)
⬆️ Resistance: 89.30
⬇️ Support: 83.50

Gold: $2,229.87 (+$35.08, +1.60%)
⬆️ Resistance: 2280
⬇️ Support: 2130

Market update – 1 Apr 24
Ended The Quarter On A Positive Note

The FBM KLCI fell on Friday, but logged in 5.6% gains for the quarter and the FBM Small Cap rose 5.77% for the same period. We believe the overall sentiment is turning more positively heading into 2Q24 with the domestic catalysts such as stable political environment, masterplans being executed as well as firmer commodities prices. Meanwhile, in the US we think the core PCE numbers came in within expectations and likely the Fed will remain dovish and may cut 3 times over 2024. On the commodity markets, Brent oil traded nearer towards USD87 amid ongoing geopolitical tension in the Middle East and extension of production cuts from OPEC+. Besides, the gold price continues to extend its upward move above USD2230.

Sectors focus: We will be releasing our market outlook for 2Q24. We opine that the revival of mega infrastructure projects could benefit the Construction, Building Material and Property sectors. Also, we like recovery theme stocks within the Banking, Consumer, Automotive, while commodity related such as O&G and Plantation will be riding their underlying commodity strengths.

Source: M+ Online

2Q24 Market Chat: Heading Into Stronger Season In April

• Wall Street may trend positively with the stronger earnings from the AI theme, coupled with the Fed heading for at least 3 interest rate cuts this year, while Bursa exchange should head into a firmer environment based on seasonality analysis.
• With stable recovery seen across the board, we opine there will be opportunities within the commodity sectors like O&G and Plantation.
• Meanwhile, we believe the ongoing recovery theme would bode well for Technology, Consumer, Banking, and Automotive.
• Besides, with more vibrant activities in the mega infrastructure space, it should be beneficial for Construction, Building Materials and Property.

2Q24 Stock picks

1. AME (S: RM1.63-1.69, R: RM1.92-2.05, CL: RM1.61)
2. CSCSTEL (S: RM1.27-1.32, R: RM1.47-1.57, CL: RM1.25)
3. E&O (S: RM0.900-0.970, R: RM1.23-1.30, CL: RM0.887)
4. GASMSIA (S: RM3.13-3.26, R: RM3.72-3.86, CL: RM3.08)
5. HSSEB (S: RM1.01-1.09, R: RM1.27-1.37, CL: RM0.995)
6. MBMR (S: RM4.34-4.47, R: RM4.99-5.18, CL: RM4.27)
7. MBSB (S: RM0.750-0.780, R: RM0.905-0.950, CL: RM0.739)
8. MPI (S: RM28.30-30.0, R: RM34.0-36.0, CL: RM27.88)
9. PIE (S: RM3.35-3.48, R: RM3.90-4.10, CL: RM3.30)
10. SPRITZER (S: RM2.10-2.17, R: RM2.39-2.49, CL: RM2.07)
11. TAANN (S: RM3.73-3.91, R: RM4.31-4.50, CL: RM3.67)
12. TDM (S: RM0.215-0.240, R: RM0.325-0.355, CL: RM0.212)
13. UNISEM (S: RM3.55-3.70, R: RM4.10-4.35, CL: RM3.50)

S: Support, R: Resistance, CL: Cut loss

Source: Bloomberg, M+ Online

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