M+ Morning Market Buzz - 24 May 24

Dow Jones: 39,065.26 pts (-605.78pts, -1.53%)
⬆ Resistance:  40900
⬇ Support:  38300

FBM KLCI: 1,629.18 pts (+7.09pts, +0.44%)
⬆ Resistance:  1670
⬇ Support:  1580

HSI Index: 18,868.71 pts (-326.89pts, -1.70%)
⬆ Resistance:  20200
⬇ Support:  18500

Crude Palm Oil: RM3,894 (-RM7, -0.18%)
⬆ Resistance:  4050
⬇ Support:  3730

Brent Oil: $81.36 (-$0.54, -0.66%)
⬆ Resistance:  86.20
⬇ Support:  79.40

Gold: $2,329.27 (+$3.32, +0.14%)
⬆ Resistance:  2500
⬇ Support:  2290

M+ Market update – 24 May 24
NVDA Charged Towards New High

After a brief pullback, the FBM KLCI charged towards fresh 52-week high, with the support of Utilities heavyweights, while the FBM ACE started to break its 52-week high. Meanwhile, sentiment on Wall Street was mixed despite (i) better-than-expected results from NVIDIA, (ii) better-than-expected manufacturing and services PMI data and softer-than-expected new homes sales. Given the mixed trading on Wall Street, coupled with weaker QoQ corporate results recently, we expect profit taking to emerge on the local exchange. On the commodity markets, Brent oil traded lower with a negative bias trading environment and the upside is capped around USDD83-84. Meanwhile, gold price extended the pullback and could be heading towards support of USD2324. 

Sectors focus: With the solid uptrend tone on NVIDIA, we expect the buying interest to spillover towards stocks on the local front, specifically the Technology sector, coupled with the data centre related stocks. Also, we believe Property stocks with huge land banks may bode well under the data centre theme. Nevertheless, we still like the Construction, Building Materials, and Solar sectors with optimism over the ongoing execution of NETR and NIMP master plans.

Stocks to watch: 

Technology: ATAIMS, EG, INFOTEC, RGTECH
Building Material: KIALIM, MCEMENT, WELLCAL
Property: BDB, IOIPG
Utility: RANHILL
Medical: UMC

Source: M+

M+ Technical Trading Stocks - 24 May 24

Stock Name: EG (8907)
Entry: Buy above RM1.550
Target: RM1.610 (3.9%), RM1.660 (7.1%)
Stop: RM1.520 (-1.9%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: WELLCAL (7231)
Entry: Buy above RM1.730
Target: RM1.800 (4.0%), RM1.850 (6.9%)
Stop: RM1.700 (-1.7%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.