M+ Online Morning Market Buzz - 3 Apr 24

Dow Jones: 39,170.24 pts (-396.61pts, -1.00%)
⬆️ Resistance: 40700
⬇️ Support: 38300

FBM KLCI: 1,547.99 pts (+3.97pts, +0.26%)
⬆️ Resistance: 1590
⬇️ Support: 1500

HSI Index: 16,931.52 pts (+390.10pts, +2.36%)
⬆️ Resistance: 17400
⬇️ Support: 16100

Crude Palm Oil: RM4,312 (+RM76, +1.76%)
⬆️ Resistance: 4420
⬇️ Support: 4050

Brent Oil: $88.92 (+$1.50, +1.72%)
⬆️ Resistance: 91.20
⬇️ Support: 83.50

Gold: $2,280.67 (+$1.33, +0.06%)
⬆️ Resistance: 2330
⬇️ Support: 2140

Market update – 3 Apr 24
Commodity-related Stocks Poised To Rally Further

The FBM KLCI extended its rebound for the 3rd trading day, experiencing a breakout above 1,540. Also, the FBM Small Cap marked another fresh 52-week high as sentiment remains positive going into 2Q24. However, Wall Street closed in the negative territory as US 10-year yield rose to a 4-month high and the traders could be pricing in a delay in cutting interest rates. Despite the US stock markets ending weaker, we believe the sentiment on the local front may stay positive with the recovery tone from China’s PMI coming in at 50.8 (vs forecast of 50.1). On the commodity front, Brent oil traded surged another session above USD89 amid the ongoing conflict in the Middle East, while the FCPO ended above RM4,380 as demand outweighs supply in the month of March. Meanwhile, the gold price rose to another all-time-high.

Sectors focus: We expect the broad market to stay positive for the session and traders could focus on the commodity related stocks within the O&G, Plantation, and Gold sectors, given the stronger tone in their respective underlying commodity prices. Meanwhile, we like selected Technology stocks as we believe the sequential recovery could be seen in the near term. Besides, catalysts within the data center could bode well for power distribution and cable and network segments.

Stocks to watch:

O&G: UZMA, VELESTO
Consumer: ABLEGLOB, PPHB
Gold: POHKONG
Plantation: CEPAT
Technology: FPI, PIE
Building material: CABNET
Chemical: LUXCHEM

Source: M+ Online

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