M+ Online Morning Market Buzz - 17 May 24

Dow Jones: 39,869.38 pts (-38.62pts, -0.10%)
⬆️ Resistance:  40900
⬇️ Support:  38600

FBM KLCI: 1,611.11 pts (+7.88pts, +0.49%)
⬆️ Resistance:  1650
⬇️ Support:  1570

HSI Index: 19,376.53 pts (+302.82pts, +1.59%)
⬆️ Resistance:  19900
⬇️ Support:  18300

Crude Palm Oil: RM3,804 (+RM22, +0.58%)
⬆️ Resistance:  3990
⬇️ Support:  3700

Brent Oil: $83.27 (+$0.52, +0.63%)
⬆️ Resistance:  86.30
⬇️ Support:  79.50

Gold: $2,376.86 (+$1.92, +0.08%)
⬆️ Resistance:  2450
⬇️ Support:  2290

Market update – 17 May 24
Fresh 52-Week High Spotted On FBM KLCI

The FBMKLCI and FBM70 managed to register fresh 52-week highs with strong buying interest emerging within the broader market. Also, the investors in general were buying into the Technology sector following the cooler-than-expected US CPI data. As the Fed maintained a less hawkish stance in its monetary policies going forward, we believe the overall buying support should continue on Wall Street. The investors will be watching the industrial production and retail sales data from China to reassess the recovery trend in China. On the commodity markets, Brent oil noticed support above USD81 and traded along USD83/bbl, while the gold price rallied nearer to USD2400. 

Sectors focus: Despite the profit taking activities on the glove companies, we believe the new tariffs on Chinese goods announced by the US could benefit the local companies in view of further trade diversions going forward. Besides, under this US tariff theme, we like sectors like Semiconductor, EMS, and Metal-related. Meanwhile, in view of the ongoing domestic catalysts such as the potential revival of mega infrastructure projects like KL-SG HSR, optimism over NETR and NIMP master plans, we opine it should be benefiting the Construction, Building Materials and Property sectors moving forward.

Stocks to watch: 

Technology: INFOTEC, LGMS, OPENSYS
Building Material: MGB, PRESTAR
EMS: SKPRES, VS
Medical: UMC
Property: ECOWLD
Solar: SLVEST
Shipping: SWIFT

Source: M+ Online

M+ Online Technical Trading Stocks - 17 May 24

Stock Name: ECOWLD (8206)
Entry: Buy above RM1.500
Target: RM1.550 (3.3%), RM1.600 (6.7%)
Stop: RM1.470 (-2.0%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: INFOTEC (0253)
Entry: Buy above RM0.850
Target: RM0.880 (3.5%), RM0.900 (5.9%)
Stop: RM0.835 (-1.8%)
Shariah: No
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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