M+ Morning Market Buzz - 7 Aug 24

Dow Jones: 38,997.66 pts (+294.39pts, +0.76%)
⬆️ Resistance:  42100
⬇️ Support:  37800

FBM KLCI: 1,574.39 pts (+37.91pts, +2.47%)
⬆️ Resistance:  1670
⬇️ Support:  1500

HSI Index: 16,647.34 pts (-51.02pts, -0.31%)
⬆️ Resistance:  17800
⬇️ Support:  16200

Crude Palm Oil: RM3,705 (+RM19, +0.51%)
⬆️ Resistance:  4020
⬇️ Support:  3630

Brent Oil: $76.48 (+$0.18, +0.24%)
⬆️ Resistance:  83.50
⬇️ Support:  73.60

Gold: $2,390.82 (-$1.05, -0.04%)
⬆️ Resistance:  2530
⬇️ Support:  2320

M+ Market update – 7 Aug 24
Accumulation Zone Is Near

As expected, the market rebounded significantly with the emergence of bargain hunting activities after significant oversold conditions; the FBM KLCI jumped 2.47%. Meanwhile, the US stock markets ended positively but were still unable to close the earlier gap down move, rising around 0.76-1.04% on the three major indices. Still, we believe the market will focus on the Japanese Yen reverse carry trade incident and trade cautiously, thus upside could be limited for now. In the commodity markets, Brent oil extended its decline below the significant support of USD77, while gold price fell below USD2400, and the FCPO price trended sideways along USD2400, and the FCPO price trended nearer to RM3700.

Sectors Focus: We like the strongest rebound observed within the Construction, Property, and Technology sectors, which are riding along the data center secular theme amid oversold conditions, translating to heavy bargain hunting activities. Also, we favour selected Finance stocks within the uptrend phase. Besides, the improved results from Harta and Riverstone could provide decent buying support for the glove industry; note that Harta has started to reward shareholders with dividends after stopping for two years.
 
Stocks to watch: 

Financial: *AFFIN*, KENANGA
Shipping: *AGX*, SYGROUP
Property: *CRESNDO*
Consumer: *SDS*
Building Material: ENGTEX

Source: M+

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