M+ Morning Market Buzz - 8 Aug 24

Dow Jones: 38,763.45 pts (-234.21pts, -0.60%)
⬆️ Resistance:  42000
⬇️ Support:  37800

FBM KLCI: 1,591.87 pts (+17.48pts, +1.11%)
⬆️ Resistance:  1660
⬇️ Support:  1500

HSI Index: 16,877.86 pts (+230.52pts, +1.38%)
⬆️ Resistance:  17800
⬇️ Support:  16200

Crude Palm Oil: RM3,697 (+RM49, +1.33%)
⬆️ Resistance:  4020
⬇️ Support:  3610

Brent Oil: $78.33 (+$1.85, +2.42%)
⬆️ Resistance:  83.50
⬇️ Support:  73.60

Gold: $2,382.92 (+$0.67, +0.03%)
⬆️ Resistance:  2530
⬇️ Support:  2320

M+ Market update – 8 Aug 24
Traders May Look For Fundamentally Solid Stocks

The local market extended its rebound as the BOJ commented that they will only increase the interest rate in a less volatile market. Most sectors rallied further except for the Plantation sector amid falling CPO prices. Meanwhile, Wall Street snapped a 2-day rebound as profit-taking activities emerged amid softer earnings from tech-related stocks. Although the market remains concerned over the Yen reverse carry trade incident, we expect buying interest to build up in view of the less hawkish BOJ statement. Additionally, traders will be monitoring the unemployment claims to be released tonight for more clarity on economic activities. In the commodity markets, Brent oil spiked amid rising geopolitical tension in the Middle East, while gold prices hovered below USD2400. The CPO price is still below RM3800.

Sectors Focus: Despite the negative overnight Wall Street performance, we believe the accumulation zone is near if there is another selling pressure on the local front. We still like stocks within the Construction, Property, and Technology sectors, which are benefiting from the data center secular theme amid oversold conditions. Additionally, we like the Finance sector as it provides a decent dividend yield during the current sell-off phase. In view of the stronger ringgit environment, we also favour the Consumer sector.

Stocks to watch: 

Building Material: *ENGTEX*, MNHLDG, *SKBSHUT*
Industrial products: *GESHEN*, SENFONG
Shipping: *AGX*, SYGROUP
Technology: APPASIA, *GOHUB*
Consumer: *SDS*

Source: M+

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