M+ Morning Market Buzz - 18 Jun 24

Dow Jones: 38,778.10 pts (+188.94pts, +0.49%)
⬆️ Resistance:  40000
⬇️ Support:  37600

FBM KLCI: 1,607.32 pts (-2.85pts, -0.18%)
⬆️ Resistance:  1660
⬇️ Support:  1580

HSI Index: 17,936.12 pts (-5.66pts, -0.03%)
⬆️ Resistance:  18700
⬇️ Support:  17400

Crude Palm Oil: RM3,928 (-RM4, -0.10%)
⬆️ Resistance:  4080
⬇️ Support:  3810

Brent Oil: $84.25 (+$1.63, +1.97%)
⬆️ Resistance:  86.30
⬇️ Support:  79.60

Gold: $2,319.14 (+$1.07, +0.05%)
⬆️ Resistance:  2390
⬇️ Support:  2250

M+ Market update – 18 Jun 24
Market To Regain Support From AI & Data Centre

The FBM KLCI, FBM 70 and FBM Small Cap fell prior to the long weekend break as investors were trying to lock in profits after a decent rally since early June. Meanwhile, in the US, the overall positive sentiment was driven by megacaps like Apple and Microsoft, while the market focused on the AI theme ahead of the economic data (retail sales – Tue and Flash manufacturing and services PMI – Fri) and the Fed’s official speech. Hence, given the positive sentiment in the US stock markets, we anticipate that the buying support should persist within the local front. On the commodity markets, Brent oil has rallied strongly above USD84/bbl, while the gold price is having stiff resistance along USD2335 zone forming a bear flag formation and the CPO price hovered within tight range between RM3900-4000.

Sector focus: Still, with Apple’s buying interest reignited with the incorporation of AI into its products, there might be spillover of buying support towards stocks on the local front within the Technology sector. Also, we like the ongoing AI and Data Center catalysts to boost the appetite for the HDD, cloud, cybersecurity segments. We like the Construction, Building Material, Property, Utilities, and RE sectors as it could benefit under the rising demand for data center going forward.  

Stocks to watch: 

Technology: ITMAX, NATGATE, RAMSSOL
Property: KPPROP, SHCHAN, SUNSURIA
Building Material: MNHLDG
Furniture: SPRING
Packaging: DSS
Telco: REDTONE

Source: M+

M+ Technical Trading Stocks - 18 Jun 24

Stock Name: ITMAX (5309)
Entry: Buy above RM2.460
Target: RM2.550 (3.7%), RM2.600 (5.7%)
Stop: RM2.400 (-2.4%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: DSS (0269)
Entry: Buy above RM0.405
Target: RM0.430 (6.2%), RM0.455 (12.3%)
Stop: RM0.385 (-4.9%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+

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