M+ Morning Market Buzz - 14 Aug 24

Dow Jones: 39,765.64 pts (+408.63pts, +1.04%)
⬆️ Resistance:  40600
⬇️ Support:  38000

FBM KLCI: 1,609.52 pts (+2.86pts, +0.18%)
⬆️ Resistance:  1650
⬇️ Support:  1540

HSI Index: 17,174.06 pts (+62.41pts, +0.36%)
⬆️ Resistance:  17600
⬇️ Support:  16400

Crude Palm Oil: RM3,690 (-RM15, -0.41%)
⬆️ Resistance:  3850
⬇️ Support:  3600

Brent Oil: $80.69 (-$1.61, -1.96%)
⬆️ Resistance:  84.10
⬇️ Support:  74.50

Gold: $2,465.16 (+$0.94, +0.04%)
⬆️ Resistance:  2530
⬇️ Support:  2340

M+ Market update – 14 Aug 24
Turning Slightly Bullish After PPI Data

The FBMKLCI traded mildly positive, but the broader local market ended mostly negative ahead of the US PPI data release. With the PPI data coming in slightly better than expected, sentiment in the US turned bullish, leading to strong buying interest, particularly in technology heavyweights. We believe this buying interest may spill over to local stocks. Traders will also be monitoring several key economic data releases, including CPI (later tonight), retail sales, and the manufacturing index (later this week). In the commodity markets, Brent oil retreated more than 1% as concerns over Middle East tensions eased, while gold prices rose above USD2,460 due to the potential for a rate cut in September. Meanwhile, CPO prices have declined below RM3,700.

Sectors Focus: Given the strong performance of tech giants in the US, we anticipate increased trading interest in the local Technology sector. Also, the Construction, Property, Building Materials, and Utilities sectors may benefit from the data center and AI themes. We also favour stocks within the Renewable Energy and Banking sectors, as well as those related to the e-invoice theme.

Stocks to watch: 

Technology: ADB, *ITMAX*, VS
Banking: *CIMB*, *PBBANK*
Construction: *BNASTRA*
Renewable: *PEKAT*
Plantation: SDG

Source: M+

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