M+ Morning Market Buzz - 5 Jun 24

Dow Jones: 38,711.29 pts (+140.26pts, +0.36%)
⬆️ Resistance:  39600
⬇️ Support:  37300

FBM KLCI: 1,615.40 pts (+18.72pts, +1.17%)
⬆️ Resistance:  1650
⬇️ Support:  1570

HSI Index: 18,444.11 pts (+41.07pts, +0.22%)
⬆️ Resistance:  19100
⬇️ Support:  17800

Crude Palm Oil: RM3,921 (+RM4, +0.10%)
⬆️ Resistance:  4170
⬇️ Support:  3830

Brent Oil: $77.52 (-$0.84, -1.07%)
⬆️ Resistance:  86.80
⬇️ Support:  75.30

Gold: $2,327.01 (+$0.82, +0.04%)
⬆️ Resistance:  2410
⬇️ Support:  2270

M+ Market update – 5 Jun 24
Steady Uptrend To Sustain

The FBM KLCI managed to rebound on top of the 1,600 level after the MSCI rebalancing activities last week. We believe the overall buying interest could sustain as traders and investors could be reassessing the corporate earnings and positioning for trading opportunities in the second half of 2024. Meanwhile, in the US, the stock markets traded higher after job openings data came in weaker-than-expectation and it may lead to earlier interest rate cuts by the Fed. On the commodity markets, Brent oil further declined below USD78 as the US data signals a cooling economy environment. The CPO violated below RM4,000 despite stronger recovery from China after pricing in weakness in Dalian contracts and softer crude oil prices weighing on the CPO market.

Sectors focus: Likely, the overall trading environment will return to fundamentals after a busy corporate earnings season in May. We believe the Technology sector has bottomed in their earnings and may chart new territories going forward with the rising investments within the data center, AI and cloud services themes, translating to potential trading opportunities within HDD, hardware suppliers and cyber securities segments under the Technology sector. Meanwhile, we think with the rising upcycle of commodities, there could be an opportunity for Building Materials, which may be linked with the higher demand in the Construction, Property and Utilities sectors.  

Stocks to watch: 

Technology: ADB, ITMAX, MI, RAMSSOL
Construction: GAMUDA, SSB8, WCT
Building Material: LBALUM, MYCRON
Shipping: SYGROUP
EMS: SKPRES
Property: ECOWLD

Source: M+

M+ Technical Trading Stocks - 5 Jun 24

Stock Name: SYGROUP (5173)
Entry: Buy above RM0.745
Target: RM0.785 (5.4%), RM0.805 (8.1%)
Stop: RM0.730 (-2.0%)
Shariah: Yes
Technical: Ascending triangle breakout

Stock Name: LBALUM (9326)
Entry: Buy above RM0.595
Target: RM0.620 (4.2%), RM0.650 (9.2%)
Stop: RM0.575 (-3.4%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Source: Bloomberg, M+

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