M+ Morning Market Buzz - 12 Aug 24

Dow Jones: 39,497.54 pts (+51.05pts, +0.13%)
⬆️ Resistance:  40500
⬇️ Support:  37800

FBM KLCI: 1,596.05 pts (+5.67pts, +0.36%)
⬆️ Resistance:  1640
⬇️ Support:  1500

HSI Index: 17,090.23 pts (+198.40pts, +1.17%)
⬆️ Resistance:  17600
⬇️ Support:  16200

Crude Palm Oil: RM3,747 (+RM43, +1.16%)
⬆️ Resistance:  3980
⬇️ Support:  3600

Brent Oil: $79.66 (-$0.04, -0.05%)
⬆️ Resistance:  81.50
⬇️ Support:  73.60

Gold: $2,431.32 (-$0.74, -0.03%)
⬆️ Resistance:  2510
⬇️ Support:  2320

M+ Market update – 12 Aug 24
Focus Will Be On Corporate Earnings

The local market gained momentum throughout last week following a significant sell-off on Monday, as bargain-hunting activities emerged, forming a strong hammer pattern on the weekly chart. Similarly, in the US stock markets, after experiencing the "Black Monday" sell-off, traders scooped up shares, completely reversing the overall market downturn. We believe buying interest has returned, but traders will monitor upcoming important economic data, including (i) PPI, (ii) CPI, (iii) retail sales, and (iv) the manufacturing index, before committing further to the relief rebound. In the commodity markets, Brent oil traded near USD80 amid the ongoing geopolitical tension in the Middle East, while the gold prices gained momentum, trading above USD2420. The CPO price is in the downtrend phase, below the RM3800

Sectors Focus: All sector indices have recovered into a hammer candle, which should support overall buying interest. We continue to expect the Construction, Property, Building Materials, Utilities, and Technology sectors to benefit from the data center catalyst and the AI theme. Meanwhile, we favor the Consumer, Renewable Energy, Industrial Products, and Shipping sectors due to the stronger ringgit environment, and the Financial sector may be worth accumulating ahead of its results, given its decent dividend yield prospects.
 
Stocks to watch: 

Technology: JCY, LGMS, SNS
Building Material: *MNHLDG*
Financial: *AFFIN*
Industrial Products: *GESHEN*
Consumer: *MRDIY*
Renewable: *PEKAT*
Shipping: ICON
Property: CRESNDO

Source: M+

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