M+ Morning Market Buzz - 29 May 24

Dow Jones: 38,852.86 pts (-216.73pts, -0.55%)
⬆️ Resistance:  40700
⬇️ Support:  38000

FBM KLCI: 1,615.82 pts (-2.45pts, -0.15%)
⬆️ Resistance:  1670
⬇️ Support:  1590

HSI Index: 18,821.16 pts (-6.19pts, -0.03%)
⬆️ Resistance:  19800
⬇️ Support:  18200

Crude Palm Oil: RM3,960 (+RM21, +0.53%)
⬆️ Resistance:  4050
⬇️ Support:  3780

Brent Oil: $84.22 (+$1.12, +1.35%)
⬆️ Resistance:  86.40
⬇️ Support:  79.10

Gold: $2,361.31 (-$2.67, -0.11%)
⬆️ Resistance:  2480
⬇️ Support:  2280

M+ Market update – 29 May 24
Nvidia’s Data Center Revenue Is The Key

The FBM KLCI extended its pullback mode as profit taking activities persisted in the broader market. Meanwhile, Wall Street traded on a mixed note as the Nasdaq was pushed higher towards 17,000 level for the first time led by the rally in NVIDIA as investors stayed bullish reassessing its stronger-than-expected results driven by the demand for generative artificial intelligence which drove the record data-center revenue, but the Dow declined 0.55%. Key events that traders will be monitoring include (i) manufacturing PMI, (ii) unemployment claims, (iii) core PCE index and (iv) US GDP data. Brent oil jumped above USD84/bbl level as the expectation of the US driving season should offer a boost to demand ahead of the OPEC+ meeting. The CPO price headed higher as well for the session near the RM4,000 level. 

Sectors focus: With the solid buying interest in Nvidia and observing the rally in Nasdaq, we believe the buying interest may flow over towards stocks on the local front, specifically in stocks that have a relationship with the data center theme. Hence, we believe the Technology sector such as HDD players, hardware components and cloud distributors providers will be on the lookout. Besides, we think the Property, Construction, Building Material, and Utilities sectors may benefit under the data center catalyst.

Stocks to watch: 

Technology: D&O, KOBAY, OPPSTAR, PENTA, PIE, SMRT, UNISEM
Shipping: SWIFT
Gaming: GENTING
Telco: OCK

Source: M+

M+ Technical Trading Stocks - 29 May 24

Stock Name: GENTING (3182)
Entry: Buy above RM4.840
Target: RM5.000 (3.3%), RM5.250 (8.5%)
Stop: RM4.750 (-1.9%)
Shariah: No
Technical: Flag-formation breakout

Stock Name: SMRT (0117)
Entry: Buy above RM1.000
Target: RM1.040 (4.0%), RM1.080 (8.0%)
Stop: RM0.985 (-1.5%)
Shariah: Yes
Technical: Breakout-pullback-continuation

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.