M+ Online Morning Market Buzz - 5 Apr 24

Dow Jones: 38,596.98 pts (-530.16pts, -1.35%)
⬆️ Resistance: 40700
⬇️ Support: 37800

FBM KLCI: 1,553.24 pts (+16.23pts, +1.06%)
⬆️ Resistance: 1590
⬇️ Support: 1510

HSI Index: 16,725.10 pts (-206.42pts, -1.22%)
⬆️ Resistance: 17400
⬇️ Support: 16400

Crude Palm Oil: RM4,400 (-RM44, -1.00%)
⬆️ Resistance: 4540
⬇️ Support: 4070

Brent Oil: $90.65 (+$1.30, +1.45%)
⬆️ Resistance: 93.20
⬇️ Support: 84.70

Gold: $2,290.94 (-$0.09, -0.00%)
⬆️ Resistance: 2360
⬇️ Support: 2190

Market update – 5 Apr 24
Building Material Segment Charging Higher

The FBM KLCI turned stronger after a one-day selldown, with the help of Industrial Products heavyweight like PMETAL. Also, we believe the market is focusing on the small caps and lower liners given the fresh 52-week high seen in FBM Small Cap. The US stock markets extended its negative performance observed on 3 of the major indices, each ending more than 1% loss. The market is pricing in further delays in the Fed’s interest rate cuts as the inflationary may remain elevated amid the spike in oil prices. On the commodity front, Brent oil charged above USD91 contributed by the heightened geopolitical tension in the Middle East region. Besides, the CPO price is hovering above RM4,300, while the gold price is hovering along the 52-week high.

Sectors focus: Given the massive profit taking on Wall Street, sentiment may turn weaker on the local front, especially on the Technology stocks. However, we believe the focus will gain within the commodity-related sectors such as O&G, Plantation and Gold-related sector supported by their respective firm underlying commodity prices. Also, we noticed Aluminium and Steel stocks are gaining momentum in tandem with the recent bullish tone in the Construction and Property sectors.

Stocks to watch:

Property: BDB, ECOWLD, KPPROP
O&G: ARMADA, NAIM
Construction: GADANG, SUNCON
Consumer: PPHB
Building Material: ASTINO
Chemical: LUXCHEM

Source: M+ Online

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