M+ Online Morning Market Buzz - 16 Apr 24

Dow Jones: 37,735.11 pts (-248.13pts, -0.65%)
⬆️ Resistance: 39800
⬇️ Support: 37000

FBM KLCI: 1,542.53 pts (-8.51pts, -0.55%)
⬆️ Resistance: 1600
⬇️ Support: 1520

HSI Index: 16,600.46 pts (-121.23pts, -0.72%)
⬆️ Resistance: 17600
⬇️ Support: 16200

Crude Palm Oil: RM4,141 (-RM19, -0.46%)
⬆️ Resistance: 4420
⬇️ Support: 4100

Brent Oil: $90.10 (-$0.35, -0.39%)
⬆️ Resistance: 94.10
⬇️ Support: 87.00

Gold: $2,383.34 (+$1.76, +0.07%)
⬆️ Resistance: 2490
⬇️ Support: 2280

Market update – 16 Apr 24
Negative Sentiment Should Persist

Following the rising geopolitical tension in the Middle East, we noticed more selling this week, where companies pulled back from their respective 52-week highs. Similarly, Wall Street ended weaker on the back of (i) rising uncertainty in the Middle East, (ii) elevated Treasury yields (highest since November), and (iii) stronger-than-expected retail sales. We believe the market could be pricing in lower probability of interest rate cuts going forward; the FOMC meeting in 2024 has less than 50% probability in cutting rates. On the commodity front, Brent oil price is hovering above USD90, while gold price traded firmer above US2350 on the back of heightened geopolitical risk. The CPO price dipped below RM4200 as rebound in production offset the increase in exports.

Sectors focus: We believe the selling pressure may persist over the near term given the uncertainty in the Middle East, as well as the negative sentiment on Wall Street, stocks on the local front could be impacted. Meanwhile, the commodity-related sectors such as O&G and Gold should still be in traders’ radar. Besides, we like stocks under the solar-theme as Solarvest will be installing Malaysia’s largest solar system at 1Utama mall, which could provide buying flow towards the whole sector.

Stocks to watch:

O&G: PANTECH, WASCO
Solar: SAMAIDEN, SOLARVEST
Construction: INTA, MGB
Consumer: LAYHONG
Technology: NATGATE
Property: SUNWAY

Source: M+ Online

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