M+ Online Morning Market Buzz - 17 Apr 24

Dow Jones: 37,798.97 pts (+63.86pts, +0.17%)
⬆️ Resistance:  39500
⬇️ Support:  37000

FBM KLCI: 1,535.00 pts (-7.53pts, -0.49%)
⬆️ Resistance:  1590
⬇️ Support:  1510

HSI Index: 16,248.97 pts (-351.49pts, -2.12%)
⬆️ Resistance:  17600
⬇️ Support:  15900

Crude Palm Oil: RM4,074 (+RM9, +0.22%)
⬆️ Resistance:  4380
⬇️ Support:  4000

Brent Oil: $90.02 (-$0.08, -0.09%)
⬆️ Resistance:  94.10
⬇️ Support:  87.00

Gold: $2,382.89 (+$3.85, +0.16%)
⬆️ Resistance:  2490
⬇️ Support:  2280

Market update – 17 Apr 24
Could Be Due For A Rebound

The selling pressure continued for the fourth trading day on the FBM KLCI, while the FBM Small Cap pulled back from its 52-week high amid concerns over rising geopolitical tension in the Middle East. Meanwhile, the US stock markets traded flat yesterday after the Fed Chair Powell commented there has been a “lack of further progress” this year on inflation. We believe the market is pricing in lesser rate cuts for 2024 and contributed to the spike in US Treasury yields. On the commodity front, Brent oil price continues to trade along USD90/bbl, while the gold price maintained its uptrend move above USD2380 on the back of unresolved tension in the Middle East. The CPO price traded below RM4100 as the market is pricing in softer demand after Eid al-Fitr festive buying. 

Sectors focus: With the mixed trading sentiment on Wall Street, we believe the selling pressure could have been overdone on the local front, and should be due for a rebound. We think there might be a rebound in the Construction, Property and Technology sector. Meanwhile, traders could position within Transportation & Logistics companies, while long term investors may look into more defensive sectors such as Consumer. Also, we like selected stocks within the Gaming, Solar, Construction and Building Materials sectors.

Stocks to watch: 

Transportation: AIRPORT, WPRTS
Consumer: FFB
NFO: MAGNUM
Solar: PEKAT
Construction: SSB8
Building Material: PMETAL
Finance: AEONCR
O&G: DIALOG
Automotive: MBMR

Source: M+ Online

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