M+ Morning Market Buzz - 14 Jun 24

Dow Jones: 38,647.10 pts (-65.11pts, -0.17%)
⬆️ Resistance:  40000
⬇️ Support:  37700

FBM KLCI: 1,610.17 pts (+1.22pts, +0.08%)
⬆️ Resistance:  1660
⬇️ Support:  1580

HSI Index: 18,112.63 pts (+174.79pts, +0.97%)
⬆️ Resistance:  19000
⬇️ Support:  17500

Crude Palm Oil: RM3,936 (+RM6, +0.15%)
⬆️ Resistance:  4110
⬇️ Support:  3810

Brent Oil: $82.75 (+$0.15, +0.18%)
⬆️ Resistance:  85.10
⬇️ Support:  77.80

Gold: $2,304.21 (-$1.21, -0.05%)
⬆️ Resistance:  2440
⬇️ Support:  2250

M+ Market update – 14 Jun 24
FBM Small Cap And FBM70 At All-Time High

After 3-day of mild pullback, the FBM KLCI rebounded marginally to close above the 1,610 level, while both the FBM70 and FBM Small Cap charged towards all-time high. Meanwhile, the PPI and core PPI data came in cooler-than-expectation, similar with the CPI trend earlier, which caused the overall US major indices like Nasdaq and S&P500 higher by 0.34% and 0.25%, respectively, while Dow Jones slid 0.17%. On the commodity markets, Brent oil is ranging around the USD81-84 zone, while the gold price is formed a bear flag formation following the US inflation CPI and PPI data. Still, the CPO price continues to stay within a tight range between RM3900-4000.

Sector focus: As anticipated, the bullish tone on the local front could persist as most of the indices have registered new highs, with the recent data center trading catalyst. Thus, it looks encouraging for the traders to hold on to the Technology sector as we think the HDD, cloud and cybersecurity segments may flourish, while earnings from the Technology sector have bottomed out. Other related sectors that could be benefiting under this theme include the Construction, Building Material, Property, Utilities, and RE sectors.  

Stocks to watch: 

Technology: CORAZA, CUSCAPI, KOBAY, SMRT
O&G: M&G, PETRONM
Furniture: SPRING
Healthcare: KOSSAN, SUPERMX, TOPGLOV
Telco: REDTONE
Packaging: DSS

M+ Technical Trading Stocks - 14 Jun 24

Stock Name: KOBAY (6971)
Entry: Buy above RM2.330
Target: RM2.420 (3.9%), RM2.480 (6.4%)
Stop: RM2.400 (3.0%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: SPRING (0216)
Entry: Buy above RM0.245
Target: RM0.260 (6.1%), RM0.270 (10.2%)
Stop: RM0.235 (-4.1%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+

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