M+ Morning Market Buzz - 15 Aug 24

Dow Jones: 40,008.39 pts (+242.75pts, +0.61%)
⬆️ Resistance:  40900
⬇️ Support:  38200

FBM KLCI: 1,612.35 pts (+2.83pts, +0.18%)
⬆️ Resistance:  1650
⬇️ Support:  1550

HSI Index: 17,113.36 pts (-60.70pts, -0.35%)
⬆️ Resistance:  17600
⬇️ Support:  16400

Crude Palm Oil: RM3,723 (+RM1, +0.03%)
⬆️ Resistance:  3850
⬇️ Support:  3570

Brent Oil: $79.76 (-$0.93, -1.15%)
⬆️ Resistance:  84.10
⬇️ Support:  76.10

Gold: $2,447.85 (-$0.39, -0.02%)
⬆️ Resistance:  2530
⬇️ Support:  2340

M+ Market update – 15 Aug 24
Inflation Data On A Declining Trend

The FBM KLCI and FBM70 managed to recover into the gap-down zone last week, while the FBM Small Cap remained in a sideways range as moderate attention was given to small caps after the market rout last Monday. Meanwhile, on Wall Street, all three major indices rose after official data showed that consumer inflation declined to 2.9% in July (vs. the consensus of 3%). With the cooling of inflationary pressures, we believe buying support will pick up on the local front. In the commodity markets, Brent oil retraced for the second session as Middle East tensions faded, while gold prices maintained above USD2,440 zone. The CPO prices managed to hold above the RM3,700.

Sectors Focus: Given the positive sentiment in the US, we believe buying interest may spill over into local stocks, specifically in the Technology sector. We also favour the Construction, Property, Building Materials, and Utilities sectors, as they should benefit from data center and AI themes. Additionally, the strong Ringgit situation may benefit the Consumer and REIT sectors.

Stocks to watch: 

Technology: *CABNET*, *VITROX*
Financial: *ABMB*, TAKAFUL
O&G: DIALOG
Construction: *INTA* 
Consumer: *ORGABIO*
Property: MATRIX
REIT: SUNREIT

Source: M+

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