M+ Morning Market Buzz - 20 May 24

Dow Jones: 40,003.59 pts (+134.21pts, +0.34%)
⬆️ Resistance: 40900
⬇️ Support: 38600

FBM KLCI: 1,616.62 pts (+5.51pts, +0.34%)
⬆️ Resistance: 1660
⬇️ Support: 1570

HSI Index: 19,553.61 pts (+177.08pts, +0.91%)
⬆️ Resistance: 20000
⬇️ Support: 18500

Crude Palm Oil: RM3,892 (+RM88, +2.31%)
⬆️ Resistance: 3990
⬇️ Support: 3710

Brent Oil: $83.98 (+$0.71, +0.85%)
⬆️ Resistance: 85.80
⬇️ Support: 79.50

Gold: $2,415.22 (+$38.36, +1.61%)
⬆️ Resistance: 2480
⬇️ Support: 2290

M+ Market update – 20 May 24
Bullish Tone Persisted On The Bursa Exchange

With Malaysia 1Q24 GDP data came in above expectations, the FBMKLCI, FBM70 and FBM Small Cap registered fresh 52-week highs. Meanwhile, the US stock markets ended mixed but the Dow charged above the 40k level. This week, we expect the market will be focusing on (i) Fed officials’ speeches, (ii) unemployment claims and (iii) manufacturing and services PMI data to understand the overall interest rates direction going forward. On the commodity markets, Brent oil noticed support above USD81 and traded along USD84/bbl, awaiting a decision from OPEC+ to continue its production cuts which will be ending on June, while the gold price rallied near to its all-time-high zone, trading around USD2420.

Sectors focus: Overall, the market is still in a bullish tone as the economy continued to grow in 1Q24. Also, we expect the US imposed higher tariff on China products will benefit Malaysia companies potentially due to higher trade diversions going forward. We strongly believe the Technology, EMS, Metal-related sectors will gain momentum in the near to mid-term. Also, we think there could be further trading potential in the Construction, Building Materials and Property sectors with the potential revival of mega infrastructure projects like KL-SG HSR as well as optimism over the execution of NETR and NIMP master plans.

Stocks to watch:

Construction: GDB, HSSEB, TRC
Technology: EG, INFOTEC, OPPSTAR
Consumer: PWF, SDS
Property: BDB
Shipping: SWIFT

Source: M+

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