M+ Morning Market Buzz - 11 Jul 24

Dow Jones: 39,721.36 pts (+429.39pts, +1.09%)
⬆️ Resistance:  40600
⬇️ Support:  38400

FBM KLCI: 1,618.38 pts (+3.96pts, +0.25%)
⬆️ Resistance:  1660
⬇️ Support:  1580

HSI Index: 17,471.67 pts (-51.56pts, -0.29%)
⬆️ Resistance:  18500
⬇️ Support:  17100

Crude Palm Oil: RM3,918 (-RM4, -0.10%)
⬆️ Resistance:  4210
⬇️ Support:  3780

Brent Oil: $85.08 (+$0.42, +0.50%)
⬆️ Resistance:  89.80
⬇️ Support:  82.40

Gold: $2,371.26 (+$1.50, +0.06%)
⬆️ Resistance:  2450
⬇️ Support:  2310

M+ Market update – 11 Jul 24
Sentiment Remains Positive With Tech Leading

The FBMKLCI and FBM70 managed to close higher, but the Small Cap index slid marginally. We expect the buying interest to stay firm supported by the performance on Wall Street. In the US, the comments from Jerome Powell in the 2-day testimony, where he expressed concerns that the higher-for-longer interest rate environment may slow down the economic growth have boosted the appetite in the stock markets; the S&P500 and Nasdaq marked new territories led by technology related stocks, while the Dow added 1.1%. Still, investors will be monitoring the upcoming CPI and PPI data later today and tomorrow. On the commodity markets, Brent oil has rebounded off the support around USD84, and settled above USD85, while the gold price climbed gradually higher above USD2370. Meanwhile, the CPO has fallen 6-day consecutively and is still trading below RM4,000. 

Sectors focus: We opine that the overall bullish tone could revolve around the data center catalyst, the potential outcome announcement on KL-SG HSR in 2H24, the ongoing executions of NETR and NIMP masterplans. Hence, we think investors could position themselves within the Construction, Property, Building Material and Utilities stocks. Also, we like the Technology sector for its gradual recovering of earnings and tagging along the overall trend from the US stock markets. 

Stocks to watch: 

Construction: *GADANG*, HSSEB, IJM, *INTA*
Technology: *FRONTKN*, ITMAX, KGB
Property: AWC, *MALTON*
NFO: *SPTOTO*

Source: M+

M+ Technical Trading Stocks - 11 Jul 24

Stock Name: FRONTKN (0128)
Entry: Buy above RM4.740
Target: RM4.900 (3.4%), RM5.000 (5.5%)
Stop: RM4.670 (-1.5%)
Shariah: Yes
Technical: Consolidation breakout

Stock Name: INTA (0192)
Entry: Buy above RM0.535
Target: RM0.555 (3.7%), RM0.585 (9.3%)
Stop: RM0.525 (-1.9%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+

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