M+ Morning Market Buzz - 21 May 24

Dow Jones: 39,806.77 pts (-196.82pts, -0.49%)
⬆️ Resistance:  40900
⬇️ Support:  38600

FBM KLCI: 1,627.50 pts (+10.88pts, +0.67%)
⬆️ Resistance:  1670
⬇️ Support:  1570

HSI Index: 19,636.22 pts (+82.61pts, +0.42%)
⬆️ Resistance:  20200
⬇️ Support:  18700

Crude Palm Oil: RM3,921 (+RM43, +1.10%)
⬆️ Resistance:  4010
⬇️ Support:  3710

Brent Oil: $83.71 (-$0.27, -0.32%)
⬆️ Resistance:  86.20
⬇️ Support:  79.50

Gold: $2,425.31 (+$2.95, +0.12%)
⬆️ Resistance:  2500
⬇️ Support:  2290

M+ Market update – 21 May 24
Technology Sector Remains At The Forefront

The overall local market conditions continued to stay bullish for most of the indices, charging towards fresh 52-week highs as foreign funds have turned net buy since last week on the YTD basis. We believe buying momentum may persist with the ongoing trade diversions theme as the US imposed higher tariffs on China products. Meanwhile, sentiment on Wall Street turned mixed; Nasdaq registered fresh all-time-high, but the Dow dipped for the session as the investors re-assessed statements from the Fed’s officials where some of the comments were slightly hawkish. Nevertheless, this week, the key focus will be on Nvidia’s result. On the commodity markets, Brent oil rangebound along USD82-84 over the past week, while gold and silver traded near all-time-high zone banking on the US rate cut expectations. 

Sectors focus: Given the Nasdaq has traded to all-time-high, coupled with the ongoing trade war between US and China, we expect the market to focus on the Technology and EMS sectors in the local front, not forgetting the gloves companies. Meanwhile, we think there could be trading potential in the Construction, Building Materials, Property, and Solar industries in view of potential revival of mega infra projects like the KL-SG HSR as well as optimism over the execution of NETR and NIMP master plans.

Stocks to watch: 

Building Material: ENGTEX, SKBSHUT
Consumer: LEESK, MYNEWS, PWF
Shipping: SWIFT
Construction: IJM
Technology: REXIT
Solar: SAMAIDEN
Insurance: TAKAFUL

Source: M+

M+ Technical Trading Stocks - 21 May 24

Stock Name: ENGTEX (5056)
Entry: Buy above RM1.010
Target: RM1.050 (4.0%), RM1.100 (8.9%)
Stop: RM0.980 (-3.0%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: SKBSHUT (7115)
Entry: Buy above RM0.685
Target: RM0.710 (3.6%), RM0.725 (5.8%)
Stop: RM0.670 (-2.2%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+

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