M+ Online Morning Market Buzz - 12 Apr 24

Dow Jones: 38,459.08 pts (-2.43pts, -0.01%)
⬆ Resistance:  39900
⬇ Support:  37500

FBM KLCI: 1,553.51 pts (-6.47pts, -0.41%)
⬆ Resistance:  1600
⬇ Support:  1520

HSI Index: 17,095.03 pts (-44.14pts, -0.26%)
⬆ Resistance:  17600
⬇ Support:  16200

Crude Palm Oil: RM4,318 (+RM23, +0.54%)
⬆ Resistance:  4480
⬇ Support:  4180

Brent Oil: $89.74 (-$0.74, -0.82%)
⬆ Resistance:  93.80
⬇ Support:  87.10

Gold: $2,372.52 (+$3.83, +0.16%)
⬆ Resistance:  2430
⬇ Support:  2230

Market update – 12 Apr 24
Focus Will Be On The US Corporate Earnings

The FBM KLCI snapped a 3-day winning streak prior to the public holiday heavyweights, but the FBM Small Cap managed to maintain its upward trend around the 52-week high, suggesting that the market is still bullish on the small cap. Meanwhile, the US managed to rebound led by the Technology heavyweights as PPI came in within expectations. Currently, the market will be pricing in lesser rate cuts for 2024 and focus will be shifted towards the upcoming corporate earnings that will kick off later today. Should the earnings continue to grow significantly for the AI theme, we believe the upward momentum will sustain in the US. On the commodity front, Brent oil price is hovering along USD88-91. Meanwhile, CPO price ended above RM4,300, while gold price is charging towards a fresh 52-week high above USD2,370. 

Sectors focus: With the positive sentiment on Wall Street, we believe the buying interest may flow towards stocks on the local front, especially the Technology sector. Meanwhile, we like the commodity-related sectors such as the Plantation, O&G and Gold sectors amid their firm underlying commodity prices. Besides, we favour the Consumer sector for its defensive nature and firm earnings capability.

Stocks to watch: 

Consumer: ABLEGLOB, FFB, OFI
Construction: AME, TRC
O&G: ARMADA, WASCO
Property: BDB
Building Material: UNITRAD
Chemical: LUXCHEM
Insurance: MNRB

Source: M+ Online

M+ Online Technical Trading Stocks - 12 Apr 24

Stock Name: BDB (6173)
Entry: Buy above RM0.420
Target: RM0.455 (8.3%), RM0.480 (14.3%)
Stop: RM0.400 (-4.8%)
Shariah: Yes
Technical: Impending flag-formation breakout

Stock Name: AME (5293)
Entry: Buy above RM1.780
Target: RM1.850 (3.9%), RM1.900 (6.7%)
Stop: RM1.740 (-2.2%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Source: Bloomberg, M+ Online

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