M+ Morning Market Buzz - 23 Jul 24

Dow Jones: 40,415.44 pts (+127.91pts, +0.32%)
⬆️ Resistance:  42300
⬇️ Support:  39400

FBM KLCI: 1,622.07 pts (-14.48pts, -0.88%)
⬆️ Resistance:  1680
⬇️ Support:  1590

HSI Index: 17,635.88 pts (+218.20pts, +1.25%)
⬆️ Resistance:  18300
⬇️ Support:  17000

Crude Palm Oil: RM3,985 (+RM5, +0.13%)
⬆️ Resistance:  4080
⬇️ Support:  3780

Brent Oil: $82.40 (-$0.23, -0.28%)
⬆️ Resistance:  87.60
⬇️ Support:  80.00

Gold: $2,396.59 (-$0.73, -0.03%)
⬆️ Resistance:  2540
⬇️ Support:  2340

M+ Market update – 23 Jul 24
Buying Interest Could Spillover To The Local Front

The FBM KLCI traded lower in tandem with the FBM70 and FBM Small Cap indices. However, we still anticipate that this will be a buy-on-dip opportunity amid the ongoing data center catalyst. Meanwhile, the US stock markets snapped the earlier sell-offs and rebounded across small and big cap stocks due to bargain hunting activities and expectations of interest rate cuts to come sooner this year. Traders will also be watching earnings from General Motors, Coca-Cola, Alphabet, and Tesla, as well as key data such as existing home sales. On the commodity markets, Brent oil fell for another session, trading below USD83, while the gold price dipped slightly below USD2400 ahead of the US CPI data (Fri). The CPO price managed to recover closer to RM4000.

Sectors Focus: Given the rebound in the Wall Street performance overnight, we expect buying support to spill over and emerge in our local stocks, especially in the Technology sector. Meanwhile, we like the healthy consolidation phase, and we expect bargain hunting activities to emerge within the Construction, Utilities, Building Materials, and Property sectors amid the upcycle moves due to the recent data center catalysts. We also favour selected stocks in the Packaging and Shipping sectors. 

Stocks to watch: 

Building Material: AYS, *HIAPTEK*, MNHLDG
Construction: *FAJAR*, *SSB8*
Technology: *RAMSSOL*
Packaging: *DSS*
Shipping: SYGROUP
Property: MATRIX

Source: M+

M+ Online Technical Focus - 23 Jul 24
HIAPTEK: JV to yield stronger earnings

Trading Catalyst
• Long term industry demand remains intact
• Strong utilisation of new operational facility from the recent JV  
"• Better margins outlook from MITI 2-year moratorium and potential demand recovery 
from China "
"• Technically, HIAPTEK last closed at RM0.48. Monitor for a breakout, targeting 
RM0.51-0.525, with a LT target at RM0.535. Support is located around RM0.455-
0.46, while cut loss is at RM0.45. "

Technical View

(i)HIAPTEK (S: RM0.455-0.46, R: RM0.51-0.525, LT TP: RM0.535, CL: RM0.45)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

Source: Bloomberg, M+ Online

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