M+ Morning Market Buzz - 15 Jul 24

Dow Jones: 40,000.90 pts (+247.15pts, +0.62%)
⬆️ Resistance:  41100
⬇️ Support:  38400

FBM KLCI: 1,619.06 pts (-4.06pts, -0.25%)
⬆️ Resistance:  1670
⬇️ Support:  1590

HSI Index: 18,293.38 pts (+461.05pts, +2.59%)
⬆️ Resistance:  18700
⬇️ Support:  17100

Crude Palm Oil: RM3,915 (-RM20, -0.51%)
⬆️ Resistance:  4090
⬇️ Support:  3780

Brent Oil: $85.03 (+$0.24, +0.28%)
⬆️ Resistance:  88.70
⬇️ Support:  82.40

Gold: $2,411.43 (-$3.84, -0.16%)
⬆️ Resistance:  2480
⬇️ Support:  2310

M+ Market update – 15 Jul 24
Building Up Exposure Within The Data Center

The FBM KLCI and FBM70 ended lower, but investors have been positioning for small cap stocks and pushed the FBM Small Cap for a positive closing on Friday led by the Transportation and Construction sectors. Meanwhile, the US stocks markets surged on Friday after assessing the PPI data (increased +0.2% in June). For this week, the traders will be monitoring China’s GDP that will be released later, while watching out (i) core retail sales, (ii) industrial production, and (iii) unemployment claims as well as the US corporate earnings. On the commodity markets, Brent oil is ranging along USD84-85, while the gold is holding firmly above USD2.4k, in view of weaker USD pricing in the rate cuts in 2H2024. Also, the CPO has rebounded off RM3,900. 

Sectors focus: With the rebound on Wall Street, we expect traders to take on more exposure on the local front. We believe the overall data center catalysts could boost the demand for stocks within the Construction, Property, Building Material and Utilities stocks and likely to provide buy-on-dip opportunities. Also, we favour selected stocks within the Gloves, Solar, and Packaging.

Stocks to watch: 

Technology: ADB, AGMO, *EDARAN*
Property: *CRESNDO, *GLOMAC*
Construction: *GADANG*, ROHAS
Building Material: *CMSB*
Solar: PEKAT
Packaging: DSS

Source: M+

M+ Technical Trading Stocks - 15 Jul 24

Stock Name: EDARAN (5036)
Entry: Buy above RM1.300
Target: RM1.360 (4.6%), RM1.400 (7.7%)
Stop: RM1.260 (-3.1%)
Shariah: Yes
Technical: Trendline breakout

Stock Name: GADANG (9261)
Entry: Buy above RM0.495
Target: RM0.525 (6.1%), RM0.550 (11.1%)
Stop: RM0.485 (-2.0%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+

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