M+ Online Morning Market Buzz - 10 May 24

Dow Jones: 39,387.76 pts (+331.37pts, +0.85%)
⬆️ Resistance:  40300
⬇️ Support:  37800

FBM KLCI: 1,601.22 pts (-3.53pts, -0.22%)
⬆️ Resistance:  1650
⬇️ Support:  1550

HSI Index: 18,537.81 pts (+223.95pts, +1.22%)
⬆️ Resistance:  19100
⬇️ Support:  18000

Crude Palm Oil: RM3,831 (-RM30, -0.78%)
⬆️ Resistance:  4040
⬇️ Support:  3740

Brent Oil: $83.88 (+$0.30, +0.36%)
⬆️ Resistance:  86.10
⬇️ Support:  80.10

Gold: $2,346.33 (+$0.35, +0.01%)
⬆️ Resistance:  2400
⬇️ Support:  2240

Market update – 10 May 24
Rate Cuts Optimism Returns

The FBMKLCI has extended its pullback for the second session after hitting the 52-week high recently, while the FBM70 has snapped a 4-day winning streak with the emergence of profit taking activities. Over in the US, Wall Street gained momentum after the release of weekly jobless claims, which jumped to the highest level since August. This has boosted the interest rate cuts optimism going forward. In our view, despite the elevated inflationary pressure, we are anticipating the overall markets to register new heights at least for the near term after assessing the AI driven corporate earnings this quarter. On the commodity markets, Brent oil rebounded along our initial support zone of USD81-83 amid strong demand and softer dollar. For the CPO, it continues to trade along the support zone around RM3800.
 
Sectors focus: Although the market could be retracing in the near term, we believe it is healthy and likely providing a decent entry towards stocks within the Technology sectors. Besides, we like the recent AI and data center trends that could provide sustainable upside towards the Power and Water industry going forward. On the potential revival of infrastructure activities, we believe it should benefit the Construction, Building Material and Properties sectors, coupled with the Utilities sector.

Stocks to watch: 

Technology: ATAIMS, ATECH, LGMS, QES
Consumer: LEESK, PPHB
Construction: GADANG, KERJAYA
Shipping: FM
O&G: DAYANG

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