M+ Morning Market Buzz - 26 Jul 24

Dow Jones: 39,935.07 pts (+81.20pts, +0.20%)
⬆️ Resistance:  41500
⬇️ Support:  39100

FBM KLCI: 1,615.18 pts (-5.96pts, -0.37%)
⬆️ Resistance:  1680
⬇️ Support:  1580

HSI Index: 17,004.97 pts (-306.08pts, -1.77%)
⬆️ Resistance:  18100
⬇️ Support:  16700

Crude Palm Oil: RM3,918 (+RM28, +0.71%)
⬆️ Resistance:  4100
⬇️ Support:  3810

Brent Oil: $82.37 (+$0.66, +0.81%)
⬆️ Resistance:  87.10
⬇️ Support:  78.50

Gold: $2,364.56 (-$1.16, -0.05%)
⬆️ Resistance:  2500
⬇️ Support:  2310

M+ Market update – 26 Jul 24
Mixed Tone Ahead Of US Inflation Data

The FBMKLCI and the broader markets continued to trade lower as further profit-taking activities took place, tracking the weaker US stock market performance. However, we noticed some bargain-hunting activities in the US after better-than-expected GDP data, recording at 2.8% compared to the 2.0% consensus, while the unemployment claims were slightly lower than consensus. Also, traders will be watching out for the core PCE price index later tonight, as the data is crucial for the Fed to make a decision on the direction of interest rates going forward. In the commodity markets, Brent oil rebounded off the USD81 support amid upbeat US economic data, while the gold price settled below the USD2400 level. The CPO is positively biased above RM3900.

Sectors Focus: As the selling pressure in the US stock markets slowed down, we believe bargain-hunting activities may emerge and traders may look for buy-on-dip opportunities within the data center theme for the near term; we like the Construction, Property, Utilities, and Building Materials segments. Meanwhile, we expect traders to reassess the situation within the Technology sector after this correction phase ahead of their respective earnings release in August. Besides, we like stocks within the Shipping, Financial, and Water-related sectors.

Stocks to watch: 

Technology: *CEKD*, GOHUB
Construction: HSSEB, *SENDAI*
Shipping: M&G, *SYGROUP*
Financial: *ABMB*, CIMB
Water-related: SALCON
Building Material: *MGB*

Source: M+

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