M+ Morning Market Buzz - 19 Jul 24

Dow Jones: 40,665.02 pts (-533.06pts, -1.29%)
⬆️ Resistance:  42300
⬇️ Support:  39000

FBM KLCI: 1,633.81 pts (+0.27pts, +0.02%)
⬆️ Resistance:  1680
⬇️ Support:  1590

HSI Index: 17,778.41 pts (+39.00pts, +0.22%)
⬆️ Resistance:  18700
⬇️ Support:  17300

Crude Palm Oil: RM3,937 (-RM8, -0.20%)
⬆️ Resistance:  4080
⬇️ Support:  3780

Brent Oil: $85.11 (+$0.03, +0.04%)
⬆️ Resistance:  88.10
⬇️ Support:  81.70

Gold: $2,445.08 (-$0.79, -0.03%)
⬆️ Resistance:  2540
⬇️ Support:  2350

M+ Market update – 19 Jul 24
Foreigners Remain Invested

Despite profit-taking activities in the broader market, the FBM KLCI closed marginally higher. Trade participation showed that foreigners remained net buyers yesterday. The trading tone has turned negative in the US, with all major indices ending in the red as unemployment claims rose more than expected. On the corporate front, investors will be looking at several key earnings reports from American Express, Travelers, and Comerica to assess the health of the consumer and financial sectors. Additionally, more volatility is expected towards the US election as President Joe Biden faces pressure from fellow Democrats to withdraw from the race. In the commodity markets, Brent oil trended sideways around USD 85, while the gold price dipped marginally towards the RM 2,444 zone. The CPO price remained in the RM 3,900-3,950 range.

Sectors Focus: In view of the softer performance on Wall Street, profit-taking activities could spill over to local stocks, dampening appetite for technology stocks. However, we expect this to be a decent buy-on-dip opportunity, with traders potentially looking into stocks within the Construction, Utilities, Building Materials, and Property sectors. We also favour selected stocks in the Shipping industry amid ongoing tension in the Red Sea region, while defensive plays could be seen in the Consumer sector.

Stocks to watch: 

Technology: EDARAN, *SKPRES*, SMRT
Building Material: *MCEMENT*, SCGBHD
Shipping: *SYGROUP*
Property: *ECOWLD*
Consumer: *ORGABIO*
Financial: PBBANK

Source: M+

M+ Technical Trading Stocks - 19 Jul 24

Stock Name: MCEMENT (3794)
Entry: Buy above RM5.840
Target: RM6.050 (3.6%), RM6.200 (6.2%)
Stop: RM5.700 (-2.4%)
Shariah: Yes
Technical: Impending flag-formation breakout

Stock Name: SYGROUP (5173)
Entry: Buy above RM0.870
Target: RM0.900 (3.4%), RM0.925 (6.3%)
Stop: RM0.855 (-1.7%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+

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