M+ Morning Market Buzz - 30 May 24

Dow Jones: 38,441.54 pts (-411.32pts, -1.06%)
⬆️ Resistance:  40500
⬇️ Support:  37700

FBM KLCI: 1,605.35 pts (-10.47pts, -0.65%)
⬆️ Resistance:  1670
⬇️ Support:  1580

HSI Index: 18,477.01 pts (-344.15pts, -1.83%)
⬆️ Resistance:  19500
⬇️ Support:  18100

Crude Palm Oil: RM4,034 (-RM12, -0.30%)
⬆️ Resistance:  4130
⬇️ Support:  3780

Brent Oil: $83.60 (-$0.62, -0.74%)
⬆️ Resistance:  86.80
⬇️ Support:  79.10

Gold: $2,338.12 (-$0.27, -0.01%)
⬆️ Resistance:  2440
⬇️ Support:  2280

M+ Market update – 30 May 24
Consolidating But Bargain Activities May Emerge

The FBM KLCI continued to pullback for the fourth session as profit taking activities were observed within Telecommunication heavyweights. Similarly, the US stock markets ended lower amid rising US Treasury yield and concerns over the timing and scale of the potential interest rate cuts by the Federal Reserve. Thus, we believe the selling pressure may spillover towards stocks on the local front. Meanwhile, traders will be watching the key data such as (i) US GDP and (ii) core PCE index this week, where it will potentially dictate the Fed’s interest rate directions going forward. On the commodity markets, Brent oil still traded within the range between USD83-84/bbl ahead of the OPEC+ meeting this weekend. The CPO price has surged above RM4,000 level as higher exports are expected amid low inventory levels in China.

Sectors focus: Still, we expect the buying interest to persist within the data centre theme amid rising investment in this segment. Key sectors that will be under this theme include (i) Technology, (ii) Property, (iii) Construction, (iv) Building Materials and (v) Utilities. Meanwhile, we opine traders will be focusing on the final week of corporate earnings and re-assess companies with solid QoQ growth for buying opportunities. For the corporate earnings, MYEG and FFB have shown decent growth. 

Stocks to watch: 

Technology: INARI, KOBAY, MI, NATGATE, SMRT, UNISEM, VS
Consumer: MRDIY
O&G: DAYANG
Shipping: SWIFT

Source: M+

M+ Technical Trading Stocks - 30 May 24

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

Stock Name: NATGATE (0270)
Entry: Buy above RM1.900
Target: RM1.970 (3.7%), RM2.050 (7.9%)
Stop: RM1.850 (-2.6%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+

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