M+ Online Morning Market Buzz - 9 May 24

Dow Jones: 39,056.39 pts (+172.13pts, +0.44%)
⬆️ Resistance:  39900
⬇️ Support:  37200

FBM KLCI: 1,604.75 pts (-0.93pts, -0.06%)
⬆️ Resistance:  1650
⬇️ Support:  1550

HSI Index: 18,313.86 pts (-165.51pts, -0.90%)
⬆️ Resistance:  19100
⬇️ Support:  17400

Crude Palm Oil: RM3,869 (+RM15, +0.39%)
⬆️ Resistance:  4040
⬇️ Support:  3730

Brent Oil: $83.58 (+$0.42, +0.51%)
⬆️ Resistance:  86.20
⬇️ Support:  80.10

Gold: $2,308.85 (+$0.13, +0.01%)
⬆️ Resistance:  2380
⬇️ Support:  2240

Market update – 9 May 24 
Profit Taking Activities May Pick Up 
 
The FBMKLCI has turned negative with the emergence of profit taking activities after a 4-day rally, but the FBM70 managed to charge towards fresh all-time-high. Meanwhile, in the US, stocks traded mixed as the selected Fed official’s statement was still maintaining a relatively hawkish view as it is believed to take more time than previously thought to lower down the inflation back to the 2% target. Also, UBER registered an unexpected first-quarter loss that contributed to the softer sentiment for S&P500 and Nasdaq. On the commodity markets, Brent oil traded along our initial support zone of USD81-83 after EIA reported US oil inventories fell last week. For the CPO, it could have found support along RM3,800. 
  
Sectors focus: The market could be heading for a healthy pullback after a significant rally over the past two weeks. Nevertheless, there is still buying momentum surfacing within the Technology sector, which is riding on the AI and data center trends. As the profit taking activities picked up, we believe traders may turn into more defensive sectors like Consumer and Utilities. Besides, we like smaller Construction companies in view of potential flow down construction projects going forward. Other favourable sectors include Properties, Building Material, Shipping and Solar. 
 
Stocks to watch:  
 
Consumer: LEESK, PWF, SDS, TPC 
Technology: CLOUDPT, INFOTEC
Construction: FAJAR, TRC 
O&G: DIALOG 
Building Material: MSC 
Shipping: TNLOGIS 
 
Source: M+ Online

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