M+ Online Morning Market Buzz - 13 May 24

Dow Jones: 39,512.84 pts (+125.08pts, +0.32%)
⬆️ Resistance:  40400
⬇️ Support:  38000

FBM KLCI: 1,600.67 pts (-0.55pts, -0.03%)
⬆️ Resistance:  1650
⬇️ Support:  1560

HSI Index: 18,963.68 pts (+425.87pts, +2.30%)
⬆️ Resistance:  19400
⬇️ Support:  18000

Crude Palm Oil: RM3,809 (-RM22, -0.57%)
⬆️ Resistance:  4040
⬇️ Support:  3700

Brent Oil: $82.79 (-$1.09, -1.30%)
⬆️ Resistance:  86.30
⬇️ Support:  80.10

Gold: $2,360.50 (+$14.17, +0.60%)
⬆️ Resistance:  2430
⬇️ Support:  2250

Market update – 13 May 24
Positive Momentum Should Return

The FBMKLCI pulled back for the third session in a row as profit taking activities emerged within the selected heavyweights, but the FBM Small Cap managed to change towards a fresh 52 week high. Over in the US, Wall Street ended mixed on Friday, but closed significantly higher for the week as weaker consumer sentiment has re-ignited the expectations of earlier interest rate cuts by the Fed in 2024. This week, inflation data like CPI, PPI, jobs data, industrial production and retail sales will be focused. On the commodity markets, Brent oil has traded below USD83 amid demand concerns, while the gold price trended positively due to interest rate cut hopes. Meanwhile, the FCPO still trades within the range of RM3,800-3,900.  
 
Sectors focus: With the market sentiment remaining bullish last week, we expect buying interest will continue this week. We expect the Technology sector to remain attractive on the back of relatively positive earnings guidance from the US corporates, while the domestic catalysts will include the KL20 summit, higher demand and investments into data centers and AI-related activities in Malaysia. Besides, we believe the Construction, Property, Utilities, Building Material and Consumer will be decent for trading in the near term.

Stocks to watch: 

Property: BDB, KSL, LBS
Consumer: CAB, OFI
Glove: HARTA
Construction: AME
Gold-related: BAHVEST
Building Material: MSC
Insurance: REXIT
Solar-related: SLVEST
O&G: WASCO

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