M+ Morning Market Buzz - 1 Aug 24

Dow Jones: 40,842.79 pts (+99.46pts, +0.24%)
⬆️ Resistance:  42100
⬇️ Support:  39100

FBM KLCI: 1,625.57 pts (+13.63pts, +0.85%)
⬆️ Resistance:  1670
⬇️ Support:  1580

HSI Index: 17,344.60 pts (+341.69pts, +2.01%)
⬆️ Resistance:  17800
⬇️ Support:  16600

Crude Palm Oil: RM3,908 (-RM4, -0.10%)
⬆️ Resistance:  4050
⬇️ Support:  3790

Brent Oil: $80.84 (+$2.77, +3.55%)
⬆️ Resistance:  84.40
⬇️ Support:  76.90

Gold: $2,447.60 (+$0.04, +0.00%)
⬆️ Resistance:  2500
⬇️ Support:  2310

M+ Market update – 1 Aug 24
Positive Sentiment As The Fed Signalled Easing

Another volatile move for the local market saw the FBM KLCI and FBM Small Cap rebounding, while FBM70 declined for the session. The Financial sector was the leader, while the Technology segment lagged. Meanwhile, in the US, stocks traded higher after the 2-day FOMC meeting concluded with the Fed keeping rates unchanged. Earnings from META and AMD were better than expected, pushing up related Technology heavyweights. Additionally, the market is pricing in interest rate cuts in September 2024 and December 2024 in light of the Fed’s statements during the FOMC meeting. In the commodity markets, Brent oil jumped significantly due to heightened geopolitical risk and further declines in US inventories, while the gold price rallied further to the USD2440 zone. The CPO price still rangebound along RM3900.

Sectors Focus: In view of the US tech giants releasing better-than-expected results, this might provide decent buying interest in the local Technology sector, with trading activities possibly revolving around the data center theme. Meanwhile, we still favour Sarawak-related stocks as momentum is building up. Additionally, with CelcomDiGi submitting a proposal to be the choice for building Malaysia’s 2nd 5G network, this might boost appetite in Telco stocks.

Stocks to watch: 

Technology: *ADB*, *BETA*, EDARAN
Renewable Energy: BMGREEN, PEKAT
Shipping: *SYGROUP*
Property: VLB
Building Materials: MCEMENT
Construction: *BNASTRA*
Telco: *OCK*

Source: M+

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