M+ Online Morning Market Buzz - 16 May 24

Dow Jones: 39,908.00 pts (+349.89pts, +0.88%)
⬆️ Resistance:  40800
⬇️ Support:  38300

FBM KLCI: 1,603.23 pts (-2.65pts, -0.17%)
⬆️ Resistance:  1640
⬇️ Support:  1570

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

Crude Palm Oil: RM3,855 (RM0, 0.00%)
⬆️ Resistance:  3990
⬇️ Support:  3700

Brent Oil: $82.75 (+$0.37, +0.45%)
⬆️ Resistance:  86.30
⬇️ Support:  79.50

Gold: $2,385.99 (+$3.12, +0.13%)
⬆️ Resistance:  2440
⬇️ Support:  2270

Market update – 16 May 24
Sustained Buying Led To Fresh Highs on Wall St

The FBMKLCI and FBM Small Cap traded lower as profit taking were noticed across the board, but FBM70 gained momentum as gloves stocks were in traders’ radar. We expect the fresh catalyst of US imposing higher tariffs on China by stages throughout 2024-2026 will provide a boost towards Malaysian companies in view of trade diversions going forward. On Wall Street, the US stock market registered fresh highs on the back of lighter-than-expected CPI reading, which reignited the hopes for earlier rate cuts by the Fed. On the commodity markets, Brent oil had a volatile session, trading within USD81-83/bbl. The gold price rallied nearer to USD2400, while CPO price rebounded to close at RM3855. 

Sectors focus: In view of the strong momentum in the US, we expect buying interest to spillover towards the local exchange, focusing on the Technology sector. Meanwhile, the US imposing higher tariffs on China products may benefit the Gloves, Semiconductor, EMS, and Metal-related industries. We also like the Construction, Building Material and Property sectors with the ongoing domestic catalysts such as the ongoing mega infrastructure projects and the optimism over NETR and NIMP master plans.

Stocks to watch: 

Building Material: HUMEIND, LBALUM, PRESTAR, SCGBHD
Technology: ATECH, GHLSYS
Chemical: SAMCHEM
Healthcare: SCOMNET
Financial: MBSB
Consumer: MRDIY

Source: M+ Online

M+ Online Technical Trading Stocks - 16 May 24

Stock Name: ATECH (5302)
Entry: Buy above RM3.110
Target: RM3.250 (4.5%), RM3.300 (6.1%)
Stop: RM3.000 (-3.5%)
Shariah: Yes
Technical: Consolidation breakout

Stock Name: PRESTAR (9873)
Entry: Buy above RM0.535
Target: RM0.560 (4.7%), RM0.580 (8.4%)
Stop: RM0.525 (-1.9%)
Shariah: Yes
Technical: Consolidation breakout

Source: Bloomberg, M+ Online

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