M+ Morning Market Buzz - 19 Jun 24

Dow Jones: 38,834.86 pts (+56.76pts, +0.15%)
⬆️ Resistance:  40000
⬇️ Support:  37600

FBM KLCI: 1,606.13 pts (-1.19pts, -0.07%)
⬆️ Resistance:  1660
⬇️ Support:  1580

HSI Index: 17,915.55 pts (-20.57pts, -0.11%)
⬆️ Resistance:  18600
⬇️ Support:  17400

Crude Palm Oil: RM3,883 (+RM41, +1.06%)
⬆️ Resistance:  4080
⬇️ Support:  3800

Brent Oil: $85.33 (+$1.08, +1.28%)
⬆️ Resistance:  87.20
⬇️ Support:  80.20

Gold: $2,329.46 (-$0.35, -0.02%)
⬆️ Resistance:  2390
⬇️ Support:  2250

M+ Market update – 19 Jun 24
Market Heading For Consolidation

Profit taking activities emerged on the local front with the FBM KLCI, FBM70 and FBM Small Cap retracing as investors were taking a cautious stance after the recent rally. Nevertheless, in the US, overall sentiment remained positive with retail sales came in below expectation, where the market could be pushing for a rate cut anytime in 2H24. Do note that Nvidia has displaced Microsoft and Apple as the largest market cap companies in the US. On the commodity markets, Brent oil rebounded further above the USD85/bbl level with the expectation that the summer demand may lower oil inventories, while the gold price stabilised around USD2330. The CPO is still trading within a tight range between RM3900-4000.

Sector focus: As profit taking activities are taking place, we believe the trading opportunities will be more selective, focusing on solid fundamental companies within the Technology sector as we believe the data center, AI and cloud will persist as the main catalyst at this juncture. While some of the construction, property and utilities players are consolidating, we may shift our attention to stocks within the Consumer, Shipping, Finance and Packaging for trading opportunities. 

Stocks to watch: 

Technology: FRONTKN, ITMAX, NATGATE, RAMSSOL, SKPRES
Finance: KENANGA
Shipping: SYGROUP
Consumer: ORGABIO
Building Material: PMETAL
Packaging: DSS

Source: M+

M+ Technical Trading Stocks - 19 Jun 24

Stock Name: KENANGA (6483)
Entry: Buy above RM1.250
Target: RM1.300 (4.0%), RM1.350 (8.0%)
Stop: RM1.220 (-2.4%)
Shariah: No
Technical: Uptrend Intact

Stock Name: DSS (0269)
Entry: Buy above RM0.410
Target: RM0.435 (6.1%), RM0.460 (12.2%)
Stop: RM0.390 (-4.9%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.