M+ Morning Market Buzz - 6 Jun 24

Dow Jones: 38,807.33 pts (+96.04pts, +0.25%)
⬆️ Resistance: 39700
⬇️ Support: 37300

FBM KLCI: 1,608.53 pts (-6.87pts, -0.43%)
⬆️ Resistance: 1660
⬇️ Support: 1570

HSI Index: 18,424.96 pts (-19.15pts, -0.10%)
⬆️ Resistance: 19100
⬇️ Support: 17800

Crude Palm Oil: RM3,906 (-RM13, -0.33%)
⬆️ Resistance: 4170
⬇️ Support: 3820

Brent Oil: $78.41 (+$0.89, +1.15%)
⬆️ Resistance: 85.50
⬇️ Support: 75.30

Gold: $2,355.32 (+$2.04, +0.09%)
⬆️ Resistance: 2410
⬇️ Support: 2270

M+ Market update – 6 Jun 24
NVDA To Boost Appetite Within The Tech Stocks

The FBM KLCI ended softer on the back of profit taking within banking heavyweights. Meanwhile, on Wall Street, led by NVIDIA, the Technology heavy S&P500 and Nasdaq charged towards new highs as the market pricing in more solid earnings prospects from the AI, cloud, semiconductor chips and data centers. Do note that NVDA has surpassed the USD 3 trillion market cap mark. On the commodity markets, Brent oil rebounded significantly amid earlier than expectation rate cut by the Fed in Sept despite the US crude inventories gained 1.2m barrels last week. For the FCPO, the price continues to drift below RM3,900 level.

Sectors focus: We believe the stronger buying interest on Wall Street following NVDA’s crossing of the USD 3 trillion mark, could spillover to stocks on the local front. Also, the AI, data center and cloud services themes in Malaysia may persist and are likely to translate to trading opportunities within the Technology sector, covering HDD, cybersecurity and hardware suppliers moving forward. Besides, we like the Construction, Property and Utilities stocks riding the data center trends in the near to mid term. Other sectors that may do well under this scenario include the shipping and logistics stocks with the rising shipping and charter rates.

Stocks to watch:

Technology: AEMULUS, CUSCAPI, ELSOFT, INARI
Building Material: ENGTEX, SKBSHUT
Furniture: SPRING
Shipping: SWIFT
Telco: REDTONE
Property: KPPROP

Source: M+

M+ Technical Trading Stocks - 6 Jun 24

Stock Name: SKBSHUT (7115)
Entry: Buy above RM0.685
Target: RM0.715 (4.4%), RM0.735 (7.3%)
Stop: RM0.670 (-2.2%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Stock Name: SWIFT (5303)
Entry: Buy above RM0.575
Target: RM0.600 (4.3%), RM0.625 (8.7%)
Stop: RM0.555 (-3.5%)
Shariah: Yes
Technical: Impending flag-formation breakout

Source: Bloomberg, M+

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