M+ Online Morning Market Buzz - 2 May 24

Dow Jones: 37,903.29 pts (+87.37pts, +0.23%)
⬆️ Resistance: 39200
⬇️ Support: 37000

FBM KLCI: 1,575.97 pts (-6.69pts, -0.42%)
⬆️ Resistance: 1630
⬇️ Support: 1540

HSI Index: 17,763.03 pts (+16.12pts, +0.09%)
⬆️ Resistance: 18400
⬇️ Support: 16800

Crude Palm Oil: RM3,818 (-RM97, -2.48%)
⬆️ Resistance: 4050
⬇️ Support: 3740

Brent Oil: $83.44 (-$2.89, -3.35%)
⬆️ Resistance: 91.70
⬇️ Support: 81.70

Gold: $2,319.56 (+$2.75, +0.12%)
⬆️ Resistance: 2400
⬇️ Support: 2240

Market update – 1 May 24
Weaker Sentiment After FOMC Meeting

After hitting another fresh 52-week high, profit taking activities emerged amongst the YTL-related heavyweights and contributed to the negative closing in the FBMKLCI. Meanwhile, Wall Street traded mixed and retreated from their intraday highs, respectively on the 3 major indices, despite the Fed keeping the interest rate unchanged as it notes “lack of further progress” on inflation. Still, we believe the Fed will be data dependent and may only reduce the rates until the inflation is moving nearer to its inflation target of 2%. On the commodity markets, Brent oil retraced significantly and traded below USD84 as EIA reported US oil inventories rose by 7.3m barrels last week, while the CPO continues to consolidate around RM3800-3900. 

Sectors focus: Despite the market sentiment turning negative after the FOMC meeting, which may cap the upside reward on the Technology sector, the KL20 summit should remain as a key catalyst, cushioning the sector and investors may accumulate selected Technology stocks for long term. Meanwhile, we favour the Construction, Property, Utilities, Solar and Building Material segments, where the sectors are likely to be driven by the domestic catalysts like (i) potential revival of mega infra projects and (ii) ongoing execution of the NETR and NIMP masterplans. 

Stocks to watch: 

Building Material: ASTINO, LBALUM, PRESTAR
Technology: ATAIMS, GHLSYS
Plantation: TAANN
Healthcare: SCOMNET
Utilities: RANHILL
O&G: DIALOG

Source: M+ Online

M+ Online Technical Trading Stocks - 2 May 24

Stock Name: RANHILL (5272)
Entry: Buy above RM1.120
Target: RM1.170 (4.5%), RM1.230 (9.8%)
Stop: RM1.100 (-1.8%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: GHLSYS (0021)
Entry: Buy above RM0.735
Target: RM0.760 (3.4%), RM0.785 (6.8%)
Stop: RM0.715 (-2.7%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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