M+ Morning Market Buzz - 20 Jun 24

Dow Jones: 38,834.86 pts (+56.76pts, +0.15%)
⬆️ Resistance:  39800
⬇️ Support:  37600

FBM KLCI: 1,599.79 pts (-6.34pts, -0.39%)
⬆️ Resistance:  1650
⬇️ Support:  1570

HSI Index: 18,430.39 pts (+514.84pts, +2.87%)
⬆️ Resistance:  18900
⬇️ Support:  17400

Crude Palm Oil: RM3,920 (+RM14, +0.36%)
⬆️ Resistance:  4080
⬇️ Support:  3800

Brent Oil: $85.07 (-$0.26, -0.30%)
⬆️ Resistance:  87.60
⬇️ Support:  80.20

Gold: $2,328.16 (+$1.49, +0.06%)
⬆️ Resistance:  2390
⬇️ Support:  2250

M+ Market update – 20 Jun 24
Searching For Value Play

The Malaysia market continues to see further profit taking activities and the FBM KLCI has dipped slightly below the 1,600 level. Meanwhile, the US markets were closed for Juneteenth public holiday, while the European markets ended mostly lower. We believe the traders will be monitoring a few key events like (i) unemployment claims and (ii) flash manufacturing and services PMI. On our local front, we believe the market sentiment may turn softer after a strong rally in the past 2 months, translating to consolidation mode on our Bursa exchange. On the commodity markets, Brent oil may trend above the consolidation zone of USD81-84, while gold has stabilised around USD2330. The CPO is still positively biased in its trading movements and may range around RM3900-4000.

Sector focus: Given all the sectors have seen profit taking activities picked up, we expect traders to shift their focus on solid fundamental companies with earnings growth and look into defensive sectors going forward. Meanwhile, we still like the Technology sector with the data center, AI and cloud remain as the main catalyst at this juncture. Besides, we like BURSA on the back of rising trading value on a daily basis, while Solar-related we may focus on SUNVIEW. Certainly, we are anticipating that Construction stocks will remain attractive going forward with more contracts being dished out going forward.  

Stocks to watch: 

Technology: *NATGATE*, *RAMSSOL*, SNS, VSTECS
Construction: GAMUDA, *INTA*
Solar: *SUNVIEW*
Finance: *BURSA*
Automotive: *EPMB*
Shipping: HARBOUR

Source: M+

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