M+ Online Morning Market Buzz - 6 May 24

Dow Jones: 38,675.68 pts (+450.02pts, +1.18%)
⬆️ Resistance:  39600
⬇️ Support:  37100

FBM KLCI: 1,589.59 pts (+9.29pts, +0.59%)
⬆️ Resistance:  1630
⬇️ Support:  1550

HSI Index: 18,475.92 pts (+268.79pts, +1.48%)
⬆️ Resistance:  19000
⬇️ Support:  17400

Crude Palm Oil: RM3,844 (-RM2, -0.05%)
⬆️ Resistance:  4030
⬇️ Support:  3730

Brent Oil: $82.96 (+$0.30, +0.36%)
⬆️ Resistance:  91.10
⬇️ Support:  81.20

Gold: $2,301.74 (+$0.37, +0.02%)
⬆️ Resistance:  2400
⬇️ Support:  2240

Market update – 6 May 24
Positive Buying Interest From Foreign Trades

With the sustained net buying interest from foreigners, the FBM KLCI managed to trade towards a fresh 52-week high, supported by the Utilities sector in view of stronger electricity demand. Meanwhile, the Wall Street regained interest with softer-than-expected jobs data, coupled with the positive boost from Apple’s results as well as biggest share buyback. However, Warren Buffett’s Berkshire Hathaway announced that it has reduced stake in Apple by 13% in its AGM and the group has cash, cash equivalent and short term Treasurys totalled to USD189bn. This week, the traders could be monitoring (i) unemployment claims and (ii) consumer sentiment. On the commodity markets, Brent oil further retraced and traded nearer to USD83, while the CPO continues to see base support near RM3,800. 

Sectors focus: Given the positive rebound on Wall Street supported by the better-than-expected results from selected tech giants, the buying interest may sustain over the near term within the Technology sector. Also, we like the Utilities sector as the data centre investment should boost electricity demand going forward. Besides, we favour the Construction, Property, Solar and Building Material segments with the catalyst like the potential revival of mega infra projects and the ongoing execution of the NETR and NIMP masterplans.  

Stocks to watch: 

Technology: KGB, NATGATE, SNS, TTVHB
Building Material: MCEMENT
Consumer: CAB, TECHBND
Logistics: HARBOUR
Property: KSL
O&G: PANTECH

Source: M+ Online

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