M+ Morning Market Buzz - 2 Jul 24

Dow Jones: 39,169.52 pts (+50.66pts, +0.13%)
⬆️ Resistance:  40300
⬇️ Support:  38200

FBM KLCI: 1,598.20 pts (+8.11pts, +0.51%)
⬆️ Resistance:  1640
⬇️ Support:  1550

HSI Index: 17,718.61 pts (+2.14pts, +0.01%)
⬆️ Resistance:  18600
⬇️ Support:  17300

Crude Palm Oil: RM3,979 (+RM40, +1.01%)
⬆️ Resistance:  4100
⬇️ Support:  3760

Brent Oil: $86.60 (+$1.60, +1.88%)
⬆️ Resistance:  89.00
⬇️ Support:  82.80

Gold: $2,331.90 (+$0.37, +0.02%)
⬆️ Resistance:  2390
⬇️ Support:  2250

M+ Market update – 2 Jul 24
Started 1H2024 On A Positive Note

The sentiment on the local front started the 1H2024 on an upbeat tone, with overall indices ending in the positive territory, except for the Telco and Media sector. Meanwhile, most of the tech giants in the US have rebounded despite ISM manufacturing PMI coming in below expectations. Going forward, investors will be monitoring (i) remarks from the Fed’s Chair Jerome Powell later today, (ii) the FOMC meeting minutes on Wednesday, and (iii) the US non-farm payrolls data due on Friday. At this juncture, the Fed is projected for one rate cut in 2024. On the commodity front, Brent oil experienced a short consolidation breakout charging above USD86, while the gold price rangebound along USD2330. For the CPO, it has started to climb above RM4,000.  

Sectors focus: Given the positive overnight Wall Street movements, we believe the buying support should continue on the local front within the Technology sector, supported by the data center, AI, and cloud services catalysts. Meanwhile, the sudden surge in commodities could provide healthy trading activities within the Energy, and Plantation sectors at least for the near term. Additionally, we recommend selected sectors like Shipping, Renewable Energy, Building Materials, Packaging, and Consumer for short-term trading opportunities.

Stocks to watch: 

Technology: ADB, *AGMO*, *MI*
Shipping: M&G, *SYGROUP*, TAS
Utilities: TENAGA
Renewable Energy: *BMGREEN*
Automotive: *EPMB*
Building Material: HIAPTEK

Source: M+

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