M+ Morning Market Buzz - 12 Jul 24

Dow Jones: 39,753.75 pts (+32.39pts, +0.08%)
⬆️ Resistance:  40700
⬇️ Support:  38400

FBM KLCI: 1,623.12 pts (+4.74pts, +0.29%)
⬆️ Resistance:  1670
⬇️ Support:  1580

HSI Index: 17,832.33 pts (+360.66pts, +2.06%)
⬆️ Resistance:  18500
⬇️ Support:  17100

Crude Palm Oil: RM3,935 (+RM22, +0.56%)
⬆️ Resistance:  4180
⬇️ Support:  3780

Brent Oil: $85.40 (+$0.32, +0.38%)
⬆️ Resistance:  89.80
⬇️ Support:  82.40

Gold: $2,415.48 (-$1.83, -0.08%)
⬆️ Resistance:  2480
⬇️ Support:  2310

M+ Market update – 12 Jul 24
Buying On Dip Opportunities May Occur

The sentiment on the local front stayed positive with the FBM KLCI, FBM70 and FBM Small Cap charged higher for the session as buying interest was observed in the broad market led by the Construction sector. However, on Wall Street, although the CPI data came in below expectations, both the S&P500 and Nasdaq retreated from their respective highs. Currently, the market could be pricing in earlier interest rate cuts by the Fed, while monitoring the upcoming PPI data which will be released later tonight. On the commodity markets, Brent oil traded sideways and supported above USD85, while the gold price climbed significantly above USD2400 as inflationary pressure cooled. Meanwhile, the CPO managed to rebound off the RM3,850 level and closed above RM3,950. 

Sectors focus: As the US tech giants are being sold down after the CPI print, we expect mild profit taking activities could emerge on the local front. However, we reckon that traders could rotate out of the data center catalyst in the near term, and look out for buying on dip opportunities going forward within the Construction, Property, Building Material and Utilities stocks as the catalysts for AI-led data center theme will still be intact. Also, we favour selected stocks within the Gloves, Telco, O&G, and Shipping.

Stocks to watch: 

Technology: *DSONIC*, PENTA
Construction: *FAJAR*
Telco: *REDTONE*
Building Material: *RESINTC*
Glove: *TOPGLOV*
Property: *E&O*
O&G: *CARIMIN*
Automotive: BAUTO
Shipping: SYGROUP

Source: M+

M+ Technical Trading Stocks - 12 Jul 24

Stock Name: FAJAR (7047)
Entry: Buy above RM0.515
Target: RM0.535 (3.9%), RM0.550 (6.8%)
Stop: RM0.505 (-1.9%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: E&O (3417)
Entry: Buy above RM1.030
Target: RM1.070 (3.9%), RM1.100 (6.8%)
Stop: RM1.000 (-2.9%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+

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