M+ Morning Market Buzz - 5 Jul 24

Dow Jones: 39,308.00 pts (-23.85pts, -0.06%)
⬆️ Resistance:  40300
⬇️ Support:  38200

FBM KLCI: 1,616.75 pts (+1.43pts, +0.09%)
⬆️ Resistance:  1660
⬇️ Support:  1550

HSI Index: 18,028.28 pts (+49.71pts, +0.28%)
⬆️ Resistance:  18500
⬇️ Support:  17300

Crude Palm Oil: RM4,067 (-RM15, -0.37%)
⬆️ Resistance:  4210
⬇️ Support:  3820

Brent Oil: $87.43 (+$0.09, +0.10%)
⬆️ Resistance:  89.40
⬇️ Support:  83.20

Gold: $2,356.69 (+$0.08, +0.00%)
⬆️ Resistance:  2420
⬇️ Support:  2280

M+ Market update – 5 Jul 24
Mild Profit Taking, But Overall Uptrend Intact

Although mild profit taking activities were seen on Bursa exchange, the FBM KLCI, FBM 70 and FBM Small Cap managed to eke out marginal gains, led by the healthcare stocks. Markets in the US were closed for Independence Day public holiday and the traders will be monitoring data such as (i) average hourly earnings, (ii) non-farm employment change, and (iii) unemployment rate which will shape the narrative and decision making of the Fed going forward. On the commodity markets, Brent oil experienced a pennant formation breakout amid falling US inventories and better future demand outlook, while the gold price hovered around USD2350. The CPO pulled back but still above the significant support of RM4000.

Sectors focus: We believe traders are still bullish on the markets, rotating towards more defensive healthcare stocks, where we see potential opportunity. We believe the ongoing catalyst of data center investments, coupled with the potential announcement on KL-SG HSR in 2H24, will provide a boost to the Construction, Property, Building Materials, and Utilities sectors. Additionally, the Technology stocks will be a long-term theme with the rising adoption of AI and cloud services.

Stocks to watch: 

Technology: FRONTKN, RAMSSOL, *SMRT*
Glove: *KOSSAN*, SUPERMX
Shipping: *M&G*, SYGROUP
Renewable: BMGREEN, *PEKAT*
Consumer: *MYNEWS*

Source: M+

M+ Technical Trading Stocks - 5 Jul 24

Stock Name: M&G (5078)
Entry: Buy above RM0.375
Target: RM0.400 (6.7%), RM0.425 (13.3%)
Stop: RM0.365 (-2.7%)
Shariah: Yes
Technical: Uptrend Intact

Stock Name: KOSSAN (7153)
Entry: Buy above RM2.460
Target: RM2.550 (3.7%), RM2.580 (4.9%)
Stop: RM2.400 (-2.4%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.