M+ Morning Market Buzz - 9 Jul 24

Dow Jones: 39,344.79 pts (-31.08pts, -0.08%)
⬆️ Resistance:  40500
⬇️ Support:  38400

FBM KLCI: 1,611.02 pts (-5.73pts, -0.35%)
⬆️ Resistance:  1660
⬇️ Support:  1570

HSI Index: 17,524.06 pts (-275.55pts, -1.55%)
⬆️ Resistance:  18500
⬇️ Support:  17200

Crude Palm Oil: RM4,042 (-RM25, -0.61%)
⬆️ Resistance:  4210
⬇️ Support:  3910

Brent Oil: $85.75 (-$0.79, -0.91%)
⬆️ Resistance:  89.80
⬇️ Support:  83.90

Gold: $2,359.13 (+$0.17, +0.01%)
⬆️ Resistance:  2450
⬇️ Support:  2280

M+ Market update – 9 Jul 24
Uptrend Intact Led By Mid And Small Caps

Both the FBM 70 and FBM Small Cap declined marginally but are still hovering along the all-time high zone prior to the long weekend holiday. Meanwhile, the US stock markets ended mixed with both S&P500 and Nasdaq closing at records, while the Dow lagged. Investors will be watching the upcoming CPI and PPI data as that may dictate the interest rate directions taken by the Fed. We believe the inflationary pressures have been on the declining trend and that should allow the Fed to potentially lower down the interest rate in 2H2024. On the commodity markets, Brent oil had declined for the past 2 trading days after hitting resistance around USD88, while the gold price traded above USD2360. The CPO could be forming a rounding bottom and a flag formation, awaiting a breakout above RM4,100. 

Sectors focus: Sentiment has turned better last week for the local front and we might be anticipating more upside potential on various sectors driven by the data center catalysts following the investment from several MNCs earlier on. Meanwhile, we believe the outcome of the KL-SG HSR project will be announced in 2H24 and may boost the appetite for stocks within the Construction, Property, Building Materials, and Utilities sectors.

Stocks to watch: 

Technology: *AGMO*, *EDARAN*, *KOBAY*, NATGATE
O&G: *CARIMIN*, LCTITAN
Solar: *PEKAT*
Finance: AFFIN

Source: M+

M+ Technical Trading Stocks - 9 Jul 24

Stock Name: PEKAT (0233)
Entry: Buy above RM0.960
Target: RM1.000 (4.2%), RM1.050 (9.4%)
Stop: RM0.935 (-2.6%)
Shariah: Yes
Technical: Uptrend Intact

Stock Name: EDARAN (5036)
Entry: Buy above RM1.250
Target: RM1.300 (4.0%), RM1.350 (8.0%)
Stop: RM1.230 (-1.6%)
Shariah: Yes
Technical: Monitor for trendline breakout

Source: Bloomberg, M+

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