M+ Morning Market Buzz - 9 Aug 24

Dow Jones: 39,446.49 pts (+683.04pts, +1.76%)
⬆️ Resistance:  40900
⬇️ Support:  37800

FBM KLCI: 1,590.38 pts (-1.49pts, -0.09%)
⬆️ Resistance:  1660
⬇️ Support:  1500

HSI Index: 16,891.83 pts (+13.97pts, +0.08%)
⬆️ Resistance:  17500
⬇️ Support:  16200

Crude Palm Oil: RM3,704 (+RM28, +0.76%)
⬆️ Resistance:  4020
⬇️ Support:  3600

Brent Oil: $79.16 (+$0.83, +1.06%)
⬆️ Resistance:  82.10
⬇️ Support:  73.60

Gold: $2,427.53 (-$2.08, -0.09%)
⬆️ Resistance:  2530
⬇️ Support:  2320

M+ Market update – 9 Aug 24
Timely Rebound In The Near Term

After traders scooped up shares during the “Black Monday” sell-off, the broader market slipped marginally as profit-taking activities emerged. However, we believe this reaction is overdone, and it could be timely for the rebound to gain further momentum. In the US, stock markets rebounded significantly overnight following the release of softer-than-expected unemployment claims, suggesting that the job market is resilient at this juncture. Additionally, some corporate results posted after-market hours were decent, supporting overall sentiment. We expect buying interest to sustain and spill over to local stocks. In the commodity markets, Brent oil strengthened amid ongoing geopolitical tensions in the Middle East, while gold prices gained momentum, rising above USD2420. The CPO price is trading slightly above RM3700.

Sectors Focus: Given the positive rebound on Wall Street, we believe buying support should emerge on the local front within the Construction, Property, Utilities, and Technology sectors, which are beneficiaries of the data center catalyst and the AI theme. Meanwhile, we favour the Consumer and Shipping sectors due to the stronger RM environment, and the Financial sector may be worth accumulating for its decent dividend yield. 
 
Stocks to watch: 

Building Material: *ENGTEX*, *HEGROUP*, MNHLDG
Financial: *CIMB*, MAYBANK
Industrial products: *GESHEN*
Shipping: *SYGROUP*
Property: AWC
REIT: SUNREIT
Technology: ITMAX

Source: M+

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