M+ Morning Market Buzz - 2 Aug 24

Dow Jones: 40,347.97 pts (-494.82pts, -1.21%)
⬆️ Resistance:  42100
⬇️ Support:  39300

FBM KLCI: 1,624.25 pts (-1.32pts, -0.08%)
⬆️ Resistance:  1670
⬇️ Support:  1580

HSI Index: 17,304.96 pts (-39.64pts, -0.23%)
⬆️ Resistance:  17800
⬇️ Support:  16600

Crude Palm Oil: RM3,870 (-RM10, -0.26%)
⬆️ Resistance:  4050
⬇️ Support:  3770

Brent Oil: $79.52 (-$1.32, -1.63%)
⬆️ Resistance:  84.40
⬇️ Support:  76.90

Gold: $2,446.26 (-$0.52, -0.02%)
⬆️ Resistance:  2520
⬇️ Support:  2310

M+ Market update – 2 Aug 24
Concerns Over Recession Fears Emerged

Still, trading activities were unstable throughout the past few days on the local front, with huge volatility, fluctuating between red and green on a daily basis after decisions from the Fed and BOJ; the Fed is looking more dovish, while the BOJ is potentially looking for more rate hikes. Meanwhile, the US stock markets traded lower as the ISM manufacturing index came in weaker than expected and may signal an economic slowdown, while the 10-year bond yields fell below 4%. Earnings-wise, Amazon reported slightly weaker revenue and dropped 5% post-market, while Apple’s results beat estimates and share prices rose after-market. In the commodity markets, Brent oil retraced slightly below USD80, while gold price maintained above USD2440 zone and the CPO price declined below RM3900.

Sectors Focus: With the negative trading sentiment and volatile moves in the US, we believe there might be further selling pressure for the session. However, we believe it could be a buy-on-dip opportunity ahead of the results season on the local front within the Construction, Building Materials, Property, and Utilities sectors. Additionally, we opine that the Renewable Energy segment should benefit from the recent incentives for solar panel installations, while the Telco segment could see an upside move due to the recent 5G news.

Stocks to watch: 

Technology: *EDARAN*, ITMAX
Building Material: *MCEMENT*
Renewable: *PEKAT*
Telco: *REDTONE*
Construction: *BNASTRA*
Property: AWC

Source: M+

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