M+ Morning Market Buzz - 13 Aug 24

Dow Jones: 39,357.01 pts (-140.53pts, -0.36%)
⬆️ Resistance:  40500
⬇️ Support:  37900

FBM KLCI: 1,606.66 pts (+10.61pts, +0.66%)
⬆️ Resistance:  1650
⬇️ Support:  1500

HSI Index: 17,111.65 pts (+21.42pts, +0.13%)
⬆️ Resistance:  17600
⬇️ Support:  16300

Crude Palm Oil: RM3,708 (+RM22, +0.59%)
⬆️ Resistance:  3880
⬇️ Support:  3600

Brent Oil: $82.30 (+$2.64, +3.31%)
⬆️ Resistance:  84.10
⬇️ Support:  74.10

Gold: $2,472.90 (+$1.54, +0.01%)
⬆️ Resistance:  2530
⬇️ Support:  2340

M+ Market update – 13 Aug 24
Short Term Pause For Longer Term Uptrend

The FBMKLCI and the broader local market extended their rebound but were still unable to close the gap on the KLCI, FBM70, and FBM Small Cap indices. Meanwhile, US stock markets ended on a mixed note ahead of the PPI and CPI data releases later today and tomorrow, respectively. These economic indicators will provide clarity on how the Fed might adjust interest rates going forward. Additionally, traders will be monitoring economic data such as retail sales and the manufacturing index later this week. In the commodity markets, Brent oil surged more than 3%, trading near USD82 amid rising geopolitical tensions in the Middle East, while gold prices gained momentum, rising aboveUSD 2,470. The CPO price has stabilized around the RM 3,700-3,800 levels.

Sectors Focus: We remain positive on the data center catalyst and the AI-led rally in the first half of 2024. We expect the Construction, Property, Building Materials, Utilities, and Technology sectors to benefit from these themes. Additionally, the strengthening RM should favour sectors such as Consumer, Renewable Energy, Industrial Products, and Shipping. Furthermore, gold-related stocks may rally in tandem with the rising gold price.

Stocks to watch: 

Construction: BNASTRA, *HSSEB*
Shipping: M&G, *SYGROUP*
Building Material: *UNIQUE*
Consumer: *MRDIY*
Industrial Products: *GESHEN*
Gold-related: TOMEI
Technology: SMETRIC

Source: M+

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