M+ Morning Market Buzz - 25 Jun 24

Dow Jones: 39,411.21 pts (+260.88pts, +0.67%)
⬆️ Resistance:  40400
⬇️ Support:  38000

FBM KLCI: 1,589.66 pts (-0.71pts, -0.04%)
⬆️ Resistance:  1650
⬇️ Support:  1560

HSI Index: 18,027.71 pts (-0.81pts, -0.00%)
⬆️ Resistance:  18900
⬇️ Support:  17500

Crude Palm Oil: RM3,898 (-RM4, -0.10%)
⬆️ Resistance:  4050
⬇️ Support:  3800

Brent Oil: $86.01 (+$0.77, +0.90%)
⬆️ Resistance:  88.00
⬇️ Support:  82.00

Gold: $2,334.65 (-$3.62, -0.16%)
⬆️ Resistance:  2420
⬇️ Support:  2270

M+ Market update – 25 Jun 24
Still Banking On The Data Center Catalyst

Profit taking activities were seen across the Bursa exchange but we noticed FBM KLCI is hovering around key support. Meanwhile, the US stock markets ended on a mixed note awaiting several key corporate earnings like Micron, Nike, Fedex, Carnival and Walgreens Boots Alliance as well as Levi Strauss. Also, traders will be on the lookout for the US GDP (Thur) and PCE (Fri) data that will be announcing this week. Both the data may provide clues for the Federal Reserve to decide on interest rate direction. Currently, market participants are still expecting about 2 rate cuts this year. On the commodity markets, Brent oil has rebounded above USD85/bbl, while gold price is ranging along USD2330. The CPO price closed below RM3,900 but still hovering above the key support of RM3850. 

Sector focus: Despite we were anticipating bargain hunting activities to emerge, overall market conditions are still affected by the profit taking on the Technology stocks in the US, namely Nvidia. Nevertheless, we opine that the sentiment will improve on the local front with the help from the rising demand of the data center, AI and cloud services catalysts, which may eventually translate to positive trading activities within the EMS players. Besides, we like Solar, Construction and Building Materials sectors in view of the rising construction activities in the data centre front, while the Shipping industry may benefit from the Red Sea incident earlier. 

Stocks to watch: 

Technology: ITMAX, RAMSSOL
Building Material: CMSB, PMETAL
Construction: GAMUDA, JETSON
Solar: SUNVIEW
Shipping: SYGROUP

Source: M+

M+ Technical Trading Stocks - 25 Jun 24

Stock Name: ITMAX (5309)
Entry: Buy above RM2.500
Target: RM2.580 (3.2%), RM2.620 (4.8%)
Stop: RM2.450 (-2.0%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: CMSB (2852)
Entry: Buy above RM1.370
Target: RM1.420 (3.6%), RM1.450 (5.8%)
Stop: RM1.350 (-1.5%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+

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