M+ Market update – 22 Jul 24
Focusing On Buy-On-Dip Opportunity

Still, the FBM KLCI managed to eke out marginal gains as foreigners remained net buyers for the 15th consecutive day, with cumulative buying value standing at RM1.74bn. In contrast, the US stock markets ended on a negative note after a global cyber outage triggered by Crowdstrike’s update contributed to selling pressure on technology-related stocks. Additionally, President Joe Biden decided to quit the election race and endorsed Kamala Harris as the Democratic nominee. This week, investors will be monitoring Flash Manufacturing and Service PMI, unemployment claims, core PCE, and US GDP data. In the commodity markets, Brent oil trended sideways in a consolidation phase around USD83, while gold prices dipped towards the USD2400-2410 range. The CPO price rebounded off RM3900 and traded with a positive bias.

Sectors Focus: With negative US overnight performance, we believe profit-taking activities may emerge in our local Technology sector. However, we believe this consolidation phase could be healthy for investors looking for buy-on-dip opportunities, targeting stocks within the Construction, Utilities, Building Materials, and Property sectors amid the ongoing data center catalysts. We also favour selected stocks in the Shipping sector amid the ongoing Red Sea tension, and Consumer, O&G and Telco.

Stocks to watch: 

Technology: AGMO, *KOBAY*
Consumer: *LHI*, MRDIY
Building Material: *AYS*
Construction: HSSEB
Shipping: *SYGROUP*
Property: AWC
O&G: *PANTECH*
Telco: REDTONE

M+ Technical Trading Stocks - 22 Jul 24

Stock Name: KOBAY (6971)
Entry: Buy above RM2.350
Target: RM2.450 (4.3%), RM2.500 (6.4%)
Stop: RM2.300 (-2.1%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Stock Name: AYS (5021)
Entry: Buy above RM0.455
Target: RM0.480 (5.5%), RM0.500 (9.9%)
Stop: RM0.445 (-2.2%)
Shariah: Yes
Technical: Break 52-week high

Source: Bloomberg, M+
 

M+ Morning Market Buzz - 22 Jul 24

Dow Jones: 40,287.53 pts (-377.49pts, -0.93%)
⬆️ Resistance:  42300
⬇️ Support:  39400

FBM KLCI: 1,636.55 pts (+2.74pts, +0.17%)
⬆️ Resistance:  1680
⬇️ Support:  1590

HSI Index: 17,417.68 pts (-360.73pts, -2.03%)
⬆️ Resistance:  18700
⬇️ Support:  17100

Crude Palm Oil: RM3,961 (+RM24, +0.61%)
⬆️ Resistance:  4060
⬇️ Support:  3780

Brent Oil: $82.63 (+$0.35, +0.42%)
⬆️ Resistance:  87.60
⬇️ Support:  81.00

Gold: $2,400.83 (+$6.67, +0.28%)
⬆️ Resistance:  2540
⬇️ Support:  2350

Source: Bloomberg, M+

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