M+ Morning Market Buzz - 4 Jun 24

Dow Jones: 38,571.03 pts (-115.29pts, -0.30%)
⬆️ Resistance:  39900
⬇️ Support:  37300

FBM KLCI: 1,596.68 pts (-7.58pts, -0.47%)
⬆️ Resistance:  1660
⬇️ Support:  1570

HSI Index: 18,403.04 pts (+323.43pts, +1.79%)
⬆️ Resistance:  19400
⬇️ Support:  17800

Crude Palm Oil: RM4,076 (+RM83, +2.08%)
⬆️ Resistance:  4170
⬇️ Support:  3800

Brent Oil: $78.36 (-$2.75, -3.39%)
⬆️ Resistance:  86.80
⬇️ Support:  76.60

Gold: $2,350.75 (-$0.25, -0.01%)
⬆️ Resistance:  2420
⬇️ Support:  2270

M+ Market update – 4 Jun 24
Bargain Hunting May Emerge

The FBM KLCI ended lower for the week below the 1,600 psychological level as profit taking activities emerged after digesting most of the corporate earnings. Meanwhile, the US stock markets closed mixed for the session amid soft manufacturing sector data, where ISM Manufacturing PMI came in below expectations. However, we think Nvidia’s projections are still intact given CEO Jensen Huang revealed that the company’s next-generation AI chip platform will be rolling out in 2026. On the commodity markets, Brent oil violated below USD80 as OPEC+ plans to return output after 3Q. The CPO price has charged higher above the RM4,050 level on the back of stronger demand coming from key buyer China due to its low inventories level.

Sectors focus: Given the Technology sector is trending strongly in the US, we expect buying support to emerge within the stocks on the local front within the Technology segments like the HDD, hardware suppliers and cyber security as the key investment theme will revolve around the data center, AI and cloud services in Malaysia. Besides, we opine that (i) Construction, (ii) Property, (iii), Building Materials and (iv) Utilities should benefit for the construction of data center going forward. Based on the latest corporate earnings, traders should focus on NATGATE, MASTEEL and MYCRON.

Stocks to watch: 

Technology: PENTA, SMRT, UNISEM
Property: IOIPG, KPPROP, UEMS
Conglomerate: HAPSENG
Transportation: M&G
Consumer: ABLEGLOB, MRDIY

Source: M+

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