M+ Morning Market Buzz - 10 Jun 24

Dow Jones: 38,798.99 pts (-87.18pts, -0.22%)
⬆️ Resistance: 39900
⬇️ Support: 37500

FBM KLCI: 1,617.86 pts (+3.13pts, +0.19%)
⬆️ Resistance: 1660
⬇️ Support: 1570

HSI Index: 18,366.95 pts (-109.85pts, -0.59%)
⬆️ Resistance: 19100
⬇️ Support: 18000

Crude Palm Oil: RM3,975 (+RM15, +0.38%)
⬆️ Resistance: 4110
⬇️ Support: 3820

Brent Oil: $79.62 (-$0.25, -0.31%)
⬆️ Resistance: 83.30
⬇️ Support: 75.30

Gold: $2,293.78 (-$82.28, -3.46%)
⬆️ Resistance: 2440
⬇️ Support: 2250

M+ Market update – 10 Jun 24
Diesel Reform Might Affect Sentiment

After violating below 1,600 during the MSCI rebalancing in the month of May, the FBMKLCI managed to rebound higher for the week, supported mainly by the Utilities heavyweights. Over in the US, the sentiment turned negative as unemployment rates were higher than expectations, and the better-than-expected jobs data delayed the expectations of an earlier rate cut. This week, we believe the diesel hike that was announced over the weekend may affect the sentiment, capping the upside potential for the near term. On the commodity markets, Brent oil has pulled back after hitting the USD80 resistance, while the gold has tanked more than 3% after the stronger US jobs report which has cooled the rate-cut hopes.

Sectors focus: We believe that the overall buying interest may persist in selected sectors like the Technology sector which are related to data center, AI and cloud services themes and their recent earnings have shown some improvements, indicating that the earnings have bottomed out. Also, we like stocks within the Construction, Property and Utilities sectors amid rising data center investments from MNCs on the local front. In the Building Material sector, the stronger earnings from MYCRON and MASTEEL recently and bonus issue announcement from ENGTEX could boost appetite.

Stocks to watch:

Technology: AGMO, DNEX, GREATEC, INARI, PENTA
Building Material: ASTINO, SKBSHUT
Consumer: FFB
Automotive: BAUTO
O&G: PANTECH

Source: M+

M+ Technical Trading Stocks - 10 Jun 24

Stock Name: FFB (5306)
Entry: Buy above RM1.530
Target: RM1.580 (3.3%), RM1.620 (5.9%)
Stop: RM1.500 (-2.0%)
Shariah: Yes
Technical: Consolidation breakout

Stock Name: INARI (0166)
Entry: Buy above RM3.450
Target: RM3.580 (3.8%), RM3.650 (5.8%)
Stop: RM3.400 (-1.4%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Source: Bloomberg, M+

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