M+ Morning Market Buzz - 25 Jul 24

Dow Jones: 39,853.87 pts (-504.22pts, -1.25%)
⬆️ Resistance:  42300
⬇️ Support:  39100

FBM KLCI: 1,621.14 pts (-8.54pts, -0.52%)
⬆️ Resistance:  1680
⬇️ Support:  1590

HSI Index: 17,311.05 pts (-158.31pts, -0.91%)
⬆️ Resistance:  18300
⬇️ Support:  17000

Crude Palm Oil: RM3,925 (-RM2, -0.05%)
⬆️ Resistance:  4100
⬇️ Support:  3830

Brent Oil: $81.71 (+$0.70, +0.86%)
⬆️ Resistance:  87.60
⬇️ Support:  78.90

Gold: $2,397.70 (+$0.23, +0.01%)
⬆️ Resistance:  2530
⬇️ Support:  2340

M+ Market update – 25 Jul 24
Weaker Sentiment Emerged

After one day of rebound, selling pressure re-emerged, causing the FBMKLCI, FBM70, and FBM Small Cap indices to end in negative territory, dragged down by industrial products and construction-related stocks. Meanwhile, led by a tech-driven sell-off, the US stock markets had their worst day since December 2022, with the S&P 500 and Nasdaq plunging 2.32% and 3.64%, respectively, following the earnings releases of Alphabet and Tesla. Additionally, traders were locking in profits after an AI-led rally that might be overheated, and a rotation into small-cap stocks was observed. On the economic data front, investors will be watching the US GDP data and unemployment claims that will be releasing tonight. In the commodity markets, Brent oil traded near the USD 81 level, while the gold price remained around USD 2,400. The CPO has slightly retraced below RM 4,000.

Sectors Focus: With the AI-driven rally pausing and correcting in the US, we believe more profit-taking activities may emerge on our local front. Nevertheless, we believe this could be an opportunity to buy the dip going forward, especially in relation to the data center theme in our local market. We favour the Construction, Property, Utilities, and Building Materials segments. Additionally, we like selected stocks within the Shipping and Technology sectors, as we observe the upward trend remains intact.

Stocks to watch: 

Technology: ITMAX, *MYEG*, NATGATE, *RAMSSOL*
Building Material: AYS, MYCRON, *SKBSHUT*
Shipping: *M&G*, *SYGROUP*

Source: M+

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