M+ Morning Market Buzz - 18 Jul 24

Dow Jones: 41,198.08 pts (+243.60pts, +0.59%)
⬆️ Resistance:  42100
⬇️ Support:  38900

FBM KLCI: 1,633.54 pts (+7.58pts, +0.47%)
⬆️ Resistance:  1680
⬇️ Support:  1590

HSI Index: 17,739.41 pts (+11.43pts, +0.06%)
⬆️ Resistance:  18700
⬇️ Support:  17300

Crude Palm Oil: RM3,932 (-RM11, -0.28%)
⬆️ Resistance:  4080
⬇️ Support:  3780

Brent Oil: $85.08 (+$1.35, +1.61%)
⬆️ Resistance:  88.10
⬇️ Support:  81.70

Gold: $2,458.79 (-$0.20, -0.01%)
⬆️ Resistance:  2540
⬇️ Support:  2330

M+ Market update – 18 Jul 24
Rotation Of Buying Interest Into Value Stocks

Overall, the FBM KLCI, FBM70, and FBM Small Cap have surged to 52-week highs again led by buying support within the local bourse led by Telco and Banking stocks as well as Construction stocks. Meanwhile, the US markets were mixed with the Dow rising to new highs above the 41,000 level but Nasdaq falling sharply as investors were taking profits from the AI stocks and rotated into selected small cap stocks on the broader market. Also, traders will be eyeing the upcoming jobs data due later today. On the commodity markets, Brent oil rebounded and stayed above the USD85, after the US oil inventories fell amid rising summer demand, while the gold price continued to stay above the USD2460. The CPO price traded above RM3900.

Sectors focus: With the mixed performance on Wall Street, we expect mild profit taking activities to emerge within the Technology stocks and traders may rotate into value stocks. Nevertheless, we expect the data centre catalysts to stay intact and may provide buy-on-dip opportunities within the related sectors namely Construction, Utilities, Building Material, and Property stocks. Also, we favour the Gloves and Shipping sector; the latter could be due to persisting Red Sea tension.

Stocks to watch: 

Building Material: MGB, MNHLDG, *MYCRON*
Technology: *EDARAN*, SMRT
Construction: FAJAR, INTA
Shipping: *SYGROUP*
Property: *E&O*
Financial: KENANGA
Gloves: KOSSAN
Consumer: ORGABIO

Source: M+

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