M+ Online Morning Market Buzz - 15 Apr 24

Dow Jones: 37,983.24 pts (-475.84pts, -1.24%)
⬆️ Resistance: 39800
⬇️ Support: 37200

FBM KLCI: 1,551.04 pts (-2.47pts, -0.16%)
⬆️ Resistance: 1600
⬇️ Support: 1520

HSI Index: 16,721.69 pts (-373.34pts, -2.18%)
⬆️ Resistance: 17600
⬇️ Support: 16300

Crude Palm Oil: RM4,282 (-RM36, -0.83%)
⬆️ Resistance: 4450
⬇️ Support: 4150

Brent Oil: $90.45 (-$0.30, -0.33%)
⬆️ Resistance: 94.10
⬇️ Support: 87.10

Gold: $2,344.37 (+$14.38, +0.61%)
⬆️ Resistance: 2490
⬇️ Support: 2260

Market update – 15 Apr 24
Geopolitical Tension May Dampen Sentiment

Last Friday, more selling was seen in the FBM KLCI, contributing to the 2-day decline, but the FBM Small Cap made a fresh 52-week high as the buying interest extended on small cap stocks after a 2-day break. However, the US stock markets ended on a negative tone across the board amid persistent inflationary pressure and rising geopolitical tensions. This week, we believe the market could turn weaker amid concerns over Iran, which might retaliate further and may provide uncertainty towards the stock markets. On the commodity front, Brent oil price traded along USD90, while gold price traded along USD2300-2400 on the back of heightened geopolitical risk. The CPO price managed to form a rebound along RM4230 zone.

Sectors focus: Given the flattish earnings from the US Banking corporates, we believe the focus could be on the inflationary pressure and Middle East worries. The traders could shift their attention towards defensive sectors such as Utilities and Consumer. Meanwhile, the commodity-related such as O&G, Plantation and Gold may extend their upward trend for now. Besides, we like the ongoing domestic catalysts that are revolving along the infrastructure-theme and this may provide upside towards the Construction, Building Material and Property sectors.

Stocks to watch:

Construction: EPICON, FAJAR, TRC
Consumer: ABLEGLOB, FFB, OFI
Gloves: COMFORT
Technology: INFOTEC
Plantation: CEPAT
Building Material: MCEMENT
Property: UEMS

Source: M+ Online

M+ Online Technical Trading Stocks - 15 Apr 24

Stock Name: OFI (7107)
Entry: Buy above RM2.090
Target: RM2.160 (3.3%), RM2.200 (5.3%)
Stop: RM2.040 (-2.4%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: EPICON (4847)
Entry: Buy above RM0.475
Target: RM0.500 (5.3%), RM0.520 (9.5%)
Stop: RM0.450 (-5.3%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+ Online

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