M+ Morning Market Buzz - 26 Jun 24

Dow Jones: 39,112.16 pts (-299.05pts, -0.76%)
⬆️ Resistance:  40400
⬇️ Support:  38100

FBM KLCI: 1,585.38 pts (-4.28pts, -0.27%)
⬆️ Resistance:  1650
⬇️ Support:  1560

HSI Index: 18,072.90 pts (+45.19pts, +0.25%)
⬆️ Resistance:  18900
⬇️ Support:  17500

Crude Palm Oil: RM3,859 (-RM24, -0.62%)
⬆️ Resistance:  4050
⬇️ Support:  3770

Brent Oil: $85.01 (-$1.00, -1.16%)
⬆️ Resistance:  88.00
⬇️ Support:  83.10

Gold: $2,319.62 (+$1.43, +0.01%)
⬆️ Resistance:  2420
⬇️ Support:  2270

M+ Market update – 26 Jun 24
Bargain Hunting Activities To Emerge

The FBM KLCI ended lower for the 7th session, as profit taking activities were seen on YTL related heavyweights. Meanwhile, over in the US, Wall Street rebounded led by NVIDIA despite some funds rotated out earlier on Monday. We opine that the market is still banking on the AI-fuelled rally as rate cuts catalyst expectations have faded. Also, we think the AI rally is more meaningful with strong earnings unlike the dot-com bubble which was not supported by fundamentals. This week, the traders will be monitoring the PCE data for more clues on the Fed’s interest rates direction. On the commodity markets, Brent oil declined below USD85/bbl, while the gold price fell below USD2330 and the CPO traded negatively below the RM3,900 level.

Sectors focus: Given the rebound in NVIDIA, we believe bargain hunting activities should emerge on our Technology stocks with the ongoing data center, AI and cloud services catalysts. Besides, we like defensive characteristic consumer stocks after the recent pullback in the markets and potentially raking in higher revenue and earnings under an inflationary environment. Meanwhile, the shipping industry may get attention as the supply chain could be under strain again. 

Stocks to watch: 

Technology: ADB, ITMAX, RAMSSOL
Consumer: MYNEWS, PPHB, SDS, SPRING
Telco: REDTONE
Solar: SUNVIEW
Building Material: MNHLDG

Source: M+

M+ Technical Trading Stocks - 26 Jun 24

Stock Name: REDTONE (0032)
Entry: Buy above RM1.090
Target: RM1.140 (4.6%), RM1.180 (8.3%)
Stop: RM1.050 (-3.7%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: SPRING (0216)
Entry: Buy above RM0.245
Target: RM0.255 (4.1%), RM0.265 (8.2%)
Stop: RM0.235 (-4.1%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+

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