M+ Morning Market Buzz - 7 Jun 24

Dow Jones: 38,886.17 pts (+78.84pts, +0.20%)
⬆️ Resistance:  39800
⬇️ Support:  37400

FBM KLCI: 1,614.73 pts (+6.20pts, +0.39%)
⬆️ Resistance:  1660
⬇️ Support:  1570

HSI Index: 18,476.80 pts (+51.84pts, +0.28%)
⬆️ Resistance:  19100
⬇️ Support:  17800

Crude Palm Oil: RM3,960 (+RM66, +1.67%)
⬆️ Resistance:  4170
⬇️ Support:  3820

Brent Oil: $79.87 (+$1.46, +1.86%)
⬆️ Resistance:  83.90
⬇️ Support:  75.30

Gold: $2,376.06 (+$1.48, +0.06%)
⬆️ Resistance:  2430
⬇️ Support:  2270

M+ Market update – 7 Jun 24
Traders Focusing On Interest Rate Cuts

After a volatile move in the past few sessions fluctuating between the negative and positive territories, the FBMKLCI has finally stabilised above the 1,600 with the help from Utilities heavyweights. Meanwhile, the US stock markets traded mixed ahead of the jobs report that will be released later today. Nevertheless, we believe the traders and investors could be reassessing the corporate earnings and position for trading opportunities in the second half of 2024. On the commodity markets, Brent oil had rebounded following interest rate cuts actions by Canada and Europe, despite EIA indicating that the US oil inventories had risen last week, while the FCPO gained momentum overnight above the RM4,000 level. For gold, it has started to climb with the expectation of a potential earlier interest rate cut by the Fed. 

Sectors focus: Still, the data center, AI and cloud services themes are materialising amongst stocks within the local front and we believe the Technology sector’s earnings have bottomed out and could translate to stronger price movements going forward. We believe the traders could focus on industry includes the HDD, hardware suppliers, cyber securities and EMS. Besides, there might be spillover effects towards stocks within the Construction, Property and Utilities sectors amid rising data center investments from MNCs on the local front.

Stocks to watch: 

Technology: AGMO, NATGATE, PENTA, RAMSSOL, SMRT
Financial: BURSA, TAKAFUL
Building Material: SKBSHUT
Property: ECOWLD
Consumer: AEON

Source: M+

M+ Technical Trading Stocks - 7 Jun 24

Stock Name: SKBSHUT (7115)
Entry: Buy above RM0.705
Target: RM0.730 (3.5%), RM0.750 (6.4%)
Stop: RM0.685 (-2.8%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: SMRT (0117)
Entry: Buy above RM1.000
Target: RM1.040 (4.0%), RM1.060 (6.0%)
Stop: RM0.980 (-2.0%)
Shariah: Yes
Technical: Impending flag-formation breakout

Source: Bloomberg, M+

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