M+ Morning Market Buzz - 10 Jul 24

Dow Jones: 39,291.97 pts (-52.82pts, -0.13%)
⬆️ Resistance:  40500
⬇️ Support:  38400

FBM KLCI: 1,614.42 pts (+3.40pts, +0.21%)
⬆️ Resistance:  1660
⬇️ Support:  1570

HSI Index: 17,523.23 pts (-0.83pts, -0.00%)
⬆️ Resistance:  18500
⬇️ Support:  17100

Crude Palm Oil: RM3,959 (-RM51, -1.29%)
⬆️ Resistance:  4210
⬇️ Support:  3860

Brent Oil: $84.66 (-$1.09, -1.27%)
⬆️ Resistance:  89.80
⬇️ Support:  82.90

Gold: $2,364.09 (-$0.28, -0.01%)
⬆️ Resistance:  2450
⬇️ Support:  2290

M+ Market update – 10 Jul 24
Resorting Back To Technology Stocks

Both the FBMKLCI and FBM70 managed to close higher, but the Small Cap index ended lower as profit taking activities were noticed across the board. On Wall Street, the S&P500 and Nasdaq indices traded higher, charting new territories led by technology related stocks, as Jerome Powell expressed concern that holding interest rates higher for longer may dampen economic growth. Additionally, traders will be monitoring the upcoming CPI and PPI data this week in order to understand the direction of the Fed going forward. On the commodity markets, Brent oil settled slightly below USD85 amid demand concerns despite the decline in oil inventories last week, while the gold price traded firmly above USD2350. However, the CPO has fallen 5-day consecutively and is trading below RM4,000. 

Sectors focus: Most of the sectors are on an upward trending tone, except the Plantation, Consumer, and Telco sectors. Hence, we reckon that investors may position themselves within the data center catalysts and the upcoming announcement on KL-SG HSR projects. We believe these catalysts would boost the appetite for more exposure within the Construction, Property, Building Material, and Utilities stocks. Also, we like the recovering trend within the Glove stocks, where it might have bottomed out over the past one year. 

Stocks to watch: 

Technology: AEMULUS, INARI, ITMAX, *SCOMNET*
Building Material: *CMSB*, *ENGTEX*, MCEMENT, PMETAL
Telco: *REDTONE*
Shipping: *TAS*

Source: M+
 

M+ Technical Trading Stocks - 10 Jul 24

Stock Name: TAS (5149)
Entry: Buy above RM0.845
Target: RM0.880 (4.1%), RM0.895 (5.9%)
Stop: RM0.835 (-1.2%)
Shariah: Yes
Technical: Consolidation breakout

Stock Name: SCOMNET (0001)
Entry: Buy above RM1.540
Target: RM1.600 (3.9%), RM1.650 (7.1%)
Stop: RM1.520 (-1.3%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+

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