M+ Online Morning Market Buzz - 25 Apr 24

Dow Jones: 38,460.92 pts (-42.77pts, -0.11%)
⬆️ Resistance: 39400
⬇️ Support: 37000

FBM KLCI: 1,571.48 pts (+9.84pts, +0.63%)
⬆️ Resistance: 1610
⬇️ Support: 1510

HSI Index: 17,201.27 pts (+372.34pts, +2.21%)
⬆️ Resistance: 17600
⬇️ Support: 15800

Crude Palm Oil: RM3,942 (+RM15, +0.38%)
⬆️ Resistance: 4130
⬇️ Support: 3810

Brent Oil: $88.02 (-$0.40, -0.45%)
⬆️ Resistance: 92.60
⬇️ Support: 84.10

Gold: $2,316.17 (+$1.92, +0.08%)
⬆️ Resistance: 2470
⬇️ Support: 2250

Market update – 25 Apr 24
Buying Interest May Sustain On The Local Front

The FBM KLCI traded positively to close with a 6-day winning streak, supported by Utilities and Telco heavyweights. Meanwhile in the US, despite the fading geopolitical tensions in the Middle East, the US Treasury yields saw an uptick and contributed to mixed trading activities on Wall Street. Post-market, META share price dropped more than 15% as company issued softer revenue forecast going forward, but capex for 2024 will be increased to USD35-40bn as META will continue to accelerate the infrastructure investments to support the AI roadmap. On the commodity markets, Brent oil rebounded traded along USD88, while gold price maintained around USD2310, without significant noise from Middle East. Besides, the CPO could be oversold around RM3950 and may be due for a rebound.

Sectors focus: Although the trading activities in the US were mixed and could see further selling pressure following META’s statements on lighter revenue forecast, we expect buying support to persist on the local front as the KL20 summit is still fresh from the oven that may shape Malaysia into a chip powerhouse for the SEA region; this could provide upside opportunity towards the Technology sector. Meanwhile, we still favour the O&G, Construction, Property, Utilities and Building Material segments on the back of revival of the infrastructure theme.

Stocks to watch:

O&G: DAYANG, DIALO, PENERGY
Industrial: PMETAL, TECHBND
Consumer: FFB, PPHB
Furniture: LIIHEN
Technology: GHLSYS
Construction: GDB

Source: M+ Online

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