M+ Morning Market Buzz - 11 Jun 24

Dow Jones: 38,868.04 pts (+69.05pts, +0.18%)
⬆️ Resistance:  39900
⬇️ Support:  37700

FBM KLCI: 1,614.37 pts (-3.49pts, -0.22%)
⬆️ Resistance:  1660
⬇️ Support:  1570

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

Crude Palm Oil: RM3,919 (+RM7, +0.18%)
⬆️ Resistance:  4110
⬇️ Support:  3820

Brent Oil: $81.63 (+$2.01, +2.52%)
⬆️ Resistance:  83.90
⬇️ Support:  75.30

Gold: $2,310.88 (-$1.22, -0.05%)
⬆️ Resistance:  2440
⬇️ Support:  2250

M+ Market update – 11 Jun 24
2-Day FOMC Meeting In Focus

As the diesel reform went live, the FBMKLCI traded lower as profit taking activities emerged within the heavyweights, while traders were focusing on small cap stocks within the Technology, Utilities and Construction members like KGB, RANHILL, and WCT. Over in the US, sentiment turned mildly positive heading into the 2-day FOMC meeting, where traders await the outcome of the FOMC meeting as well as the CPI and PPI that will be released over the next two days. Based on Bloomberg, it is widely anticipated that the Fed will keep the interest rate unchanged in this FOMC meeting. On the commodity markets, Brent rebounded higher into the range of USD81-84 zone. 

Sectors focus: We remain positive on the Technology sector driven by the rising demand on data center, AI and cloud services, while the earnings in the Tech sector could be recovering going forward. Meanwhile, we opine that the traders may reassess the overall Building Material segment linked towards data center and in the rising commodity upcycle with positive earnings growth. Also, we think the stocks within the Construction, Property and Utilities sectors should benefit in the rising data center environment.

Stocks to watch: 

Technology: ADB, AGMO, ATECH, CATCHA, CENSOF, EDARAN, ELSOFT
Consumer: FFB, FOCUSP
Property: ECOWLD, GLOMAC

Source: M+

M+ Technical Trading Stocks - 11 Jun 24

Stock Name: CATCHA (0173)
Entry: Buy above RM0.400
Target: RM0.425 (6.3%), RM0.450 (12.5%)
Stop: RM0.385 (-3.8%)
Shariah: No
Technical: Flag-formation breakout

Stock Name: ELSOFT (0090)
Entry: Buy above RM0.570
Target: RM0.600 (5.3%), RM0.625 (9.6%)
Stop: RM0.550 (-3.5%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+

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