M+ Morning Market Buzz - 16 Jul 24

Dow Jones: 40,211.72 pts (+210.82pts, +0.53%)
⬆️ Resistance:  41200
⬇️ Support:  38400

FBM KLCI: 1,629.82 pts (+10.76pts, +0.66%)
⬆️ Resistance:  1670
⬇️ Support:  1590

HSI Index: 18,015.94 pts (-277.44pts, -1.52%)
⬆️ Resistance:  18700
⬇️ Support:  17100

Crude Palm Oil: RM3,874 (+RM6, +0.15%)
⬆️ Resistance:  4090
⬇️ Support:  3780

Brent Oil: $84.85 (-$0.18, -0.21%)
⬆️ Resistance:  88.10
⬇️ Support:  82.40

Gold: $2,422.27 (-$1.09, -0.05%)
⬆️ Resistance:  2490
⬇️ Support:  2310

M+ Market update – 16 Jul 24
More Clarity On The Fed’s Rate Cut

The FBM KLCI retested the 1632.79 level intraday but managed to close higher for the session. Meanwhile, both the FBM70 and FBM Small Cap traded positively as buying interest was observed across most sectors. Major US indices closed higher, while the Russell2k index surged further after the Fed's comments that the FOMC won't wait for inflation to reach its 2% target before lowering rates. Investors will be watching US retail sales today, with industrial production data released on Thursday and unemployment claims on Friday. On the commodity markets, Brent oil trades slightly below USD85 amid demand concerns, while the gold price trades above USD2,420. The CPO price trades below RM3,900.

Sector Focus: We've seen more buying interest in smaller-cap construction stocks due to the expectation of more job awards following recent data center investments by MNCs. We believe spillover buying support could be seen in property, building materials, utilities, and technology stocks. The recent gazetting of the Cyber Security Act 2024 by the AG's Chambers could boost demand for cybersecurity stocks. Other favorable segments to monitor include telco and financials.

Stocks to watch: 

Construction: BNASTRA, ECONBHD, *SSB8*
Technology: *AGMO*, *KOBAY*
Telco: *REDTONE*
Financial: *KENANGA*
Property: CRESNDO
Building Material: MYCRON

Source: M+

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