M+ Morning Market Buzz - 3 Jul 24

Dow Jones: 39,331.85 pts (+162.33pts, +0.41%)
⬆️ Resistance:  40300
⬇️ Support:  38200

FBM KLCI: 1,597.96 pts (-0.24pts, -0.02%)
⬆️ Resistance:  1640
⬇️ Support:  1550

HSI Index: 17,769.14 pts (+50.53pts, +0.29%)
⬆️ Resistance:  18600
⬇️ Support:  17300

Crude Palm Oil: RM4,089 (-RM22, -0.54%)
⬆️ Resistance:  4180
⬇️ Support:  3760

Brent Oil: $86.24 (-$0.36, -0.42%)
⬆️ Resistance:  89.30
⬇️ Support:  82.80

Gold: $2,329.46 (+$1.51, +0.06%)
⬆️ Resistance:  2390
⬇️ Support:  2250

M+ Market update – 3 Jul 24
Uptrend Tone Persisted On FBM70 and Small Cap

The FBM KLCI ended marginally lower amid selling pressure within selected Telco heavyweights, while FBM70 and FBM Small Cap rebounded strongly. Over in the US, sentiment remained positive with S&P500 and Nasdaq closed at all-time-high positions after Jerome Powell commented that the inflation is well on track towards Fed’s target, and will be data dependent in deciding the interest rate directions. Few key events that the market will be monitoring include the (i) FOMC meeting minutes (Wed), and (ii) US non-farm payrolls data on Friday. On the commodity market, Brent oil had a mild pullback after the breakout, ranging along USD86/bbl, while the gold price is in the sideways consolidation phase. For the CPO, it has moved out of the consolidation phase and steadied above RM4,000.  

Sectors focus: With the commodities surging, we expect the traders could shift their attention on the Energy and Plantation sector at least for the near term. Meanwhile, the rising investment of data center, AI, and cloud services to remain as the center of attention, and it should benefit the Construction, Property, Building Materials, and Renewable Energy. Besides, given the all-time high closing of S&P500 and Nasdaq, we believe the buying support could spillover towards the Technology sector this week. 

Stocks to watch: 

Technology: *AGMO*, FRONTKN, *ITMAX*, MI
Construction: GAMUDA, *JETSON*
Shipping: *SYGROUP*
Plantation: *THPLANT*
Building Material: AYS

Source: M+

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