M+ Online Morning Market Buzz - 15 May 24

Dow Jones: 39,431.51 pts (+126.60pts, -0.21%)
⬆️ Resistance: 40500
⬇️ Support: 38100

FBM KLCI: 1,602.91 pts (+2.97pts, +0.19%)
⬆️ Resistance: 1650
⬇️ Support: 1570

HSI Index: 19,073.71 pts (-41.35pts, -0.22%)
⬆️ Resistance: 19700
⬇️ Support: 18000

Crude Palm Oil: RM3,815 (-RM11, -1.37%)
⬆️ Resistance: 4040
⬇️ Support: 3700

Brent Oil: $83.36 (-$0.98, -0.08%)
⬆️ Resistance: 86.30
⬇️ Support: 80.10

Gold: $2,336.32 (-$0.65, +0.41%)
⬆️ Resistance: 2430
⬇️ Support: 2260

Market update – 15 May 24
Threading Higher In The Overbought Region

The FBMKLCI extended the rebound for the second day, while the FBM Small Cap charged strongly for the session. Over in the US, Wall Street managed to close broadly higher as Jerome Powell commented that the next move is unlikely to be a rate hike, which provided reassurance on the interest rate direction to the traders after digesting a hotter-than-expected PPI data. Overall, we opine that buying interest could sustain in the near term in the regional and local stocks markets. On the commodity markets, Brent oil traded lower but still ranging along the support zone of USD81-84, while the gold price held above the USD2350 level.

Sectors focus: The recent uptrend has continued for the past month and we believe the reiteration of no rate hike from the Fed will boost the positive sentiment in the stock markets at least for the near term. Overall, we expect the local exchange to trade higher with the optimism revolving around the Utilities sector following the increased demand from AI-related investments like data center, coupled with plans to craft Malaysia into chip powerhouse in the SEA region, these will eventually benefit the Technology sector. Meanwhile, we like other sectors within the Construction, Property, Building Materials, and Consumers on the back of local driven catalysts such as NETR, NIMP and potential revival of KL-SG HSR.

Stocks to watch:

Construction: GADANG, HSSEB, MRCB, TRC
Technology: INFOTEC, NATGATE
Utility: BTECH, SAMCHEM
Consumer: SUPERLN
Shipping: TAS

Source: M+ Online

M+ Online Technical Trading Stocks - 15 May 24

Stock Name: HSSEB (0185)
Entry: Buy above RM1.040
Target: RM1.080 (3.8%), RM1.120 (7.7%)
Stop: RM1.000 (-3.8%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: BTECH (0011)
Entry: Buy above RM0.345
Target: RM0.360 (4.3%), RM0.385 (11.6%)
Stop: RM0.335 (-2.9%)
Shariah: Yes
Technical: Consolidation breakout

Source: Bloomberg, M+ Online

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