M+ Morning Market Buzz - 6 Aug 24

Dow Jones: 38,703.27 pts (-1033.99pts, -2.60%)
⬆️ Resistance:  42100
⬇️ Support:  37800

FBM KLCI: 1,536.48 pts (-74.57pts, -4.63%)
⬆️ Resistance:  1670
⬇️ Support:  1510

HSI Index: 16,698.36 pts (-247.15pts, -1.46%)
⬆️ Resistance:  17800
⬇️ Support:  16200

Crude Palm Oil: RM3,787 (+RM2, +0.05%)
⬆️ Resistance:  4040
⬇️ Support:  3710

Brent Oil: $76.30 (-$0.51, -0.66%)
⬆️ Resistance:  83.50
⬇️ Support:  73.60

Gold: $2,410.79 (-$2.08, -0.09%)
⬆️ Resistance:  2530
⬇️ Support:  2320

M+ Market update – 6 Aug 24
Significant Oversold, Accumulation May Emerge
 
With the Yen reverse carry trade theme, the Asian stock markets have taken a significant beating, causing Malaysia's market to crater 4.6%-9.42% across both large-cap and smaller indices; the biggest declining sectors include Properties and Technology. Meanwhile, Wall Street gapped down but narrowed the intraday losses after the US services PMI data came in better-than-expected, which alleviated earlier recession fears. We believe the market could have fallen to a more acceptable level, and an accumulation phase may emerge in the near term. Currently, global futures are rebounding around 1%. In the commodity markets, Brent oil declined towards USD75 and formed a hammer candle, while gold trended sideways along USD2400, and the FCPO price tanked below RM3800.

Sectors Focus: Despite the weak performance in the US markets, we believe the overall selling pressure might have been well digested, at least for the near term, although there might be margin calls happening later this week. We believe the strongest rebound may occur within large-cap stocks in the most lagging sectors from yesterday, namely Technology, Property, and Construction, where the catalysts are still revolving around data centers. Additionally, the Finance segment might be attractive for investors to pick up once foreign funds return.

Stocks to watch: 

Financial: *AFFIN*
Technology: NOTION 
Rubber-related: *SENFONG*
Plastic-related: *GESHEN*
Property: *AWC*
Consumer: GCB
Building Material: *ENGTEX*

Source: M+

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