M+ Morning Market Buzz - 28 May 24

Dow Jones: 39,069.59 pts (+4.33pts, +0.01%)
⬆️ Resistance:  40800
⬇️ Support:  38300

FBM KLCI: 1,618.27 pts (-1.13pts, -0.07%)
⬆️ Resistance:  1670
⬇️ Support:  1590

HSI Index: 18,827.35 pts (+218.41pts, +1.17%)
⬆️ Resistance:  19900
⬇️ Support:  18200

Crude Palm Oil: RM3,870 (+RM51, +1.32%)
⬆️ Resistance:  4050
⬇️ Support:  3780

Brent Oil: $83.10 (+$0.98, +1.19%)
⬆️ Resistance:  85.50
⬇️ Support:  79.10

Gold: $2,350.97 (+$17.84, +0.76%)
⬆️ Resistance:  2490
⬇️ Support:  2280

M+ Market update – 28 May 24
Data Center Theme Taking The Center Stage

Profit taking activities have emerged partly on the local front after a decent stretch of rally in the past few weeks. However, the trading activities will remain robust revolving the data center theme given the rising demand within this segment. Meanwhile, we expect Wall Street to stay relatively healthy in the near term supported by the Technology sector. Key events that traders will be looking forward to include (i) manufacturing PMI, (ii) unemployment claims, (iii) core PCE index and (iv) US GDP data. On the commodity markets, Brent oil rebounded above the USD81/bbl level zone, ahead of the OPEC+ meeting on 1st June. Meanwhile, CPO price rangebound traded above RM3,900. 

Sectors focus: With the broad sentiment turning mixed, investors will flow their capital into sectors that have higher conviction, which the current theme is on the rising investment in data center in Malaysia. Hence, we believe the Technology sector such as HDD players, hardware components and cloud distributors providers will be traded on a vibrant note. Also, we believe the data center may benefit the Property, Construction, Building Material, and Utilities sectors.

Stocks to watch: 

Consumer: FOCUSP, MYNEWS, SPRING
Technology: LGMS, MI, PENTA
Property: GLOMAC, KPPROP
Shipping: SWIFT
O&G: DIALOG

Source: M+

M+ Technical Trading Stocks - 28 May 24

Stock Name: SWIFT (5303)
Entry: Buy above RM0.565
Target: RM0.590 (4.4%), RM0.625 (10.6%)
Stop: RM0.555 (-1.8%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: SPRING (0216)
Entry: Buy above RM0.250
Target: RM0.280 (12.0%), RM0.300 (20.0%)
Stop: RM0.240 (-4.0%)
Shariah: Yes
Technical: Consolidation breakout

Source: Bloomberg, M+

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