M+ Morning Market Buzz - 16 Aug 24

Dow Jones: 40,563.06 pts (+554.67pts, +1.39%)
⬆️ Resistance:  41500
⬇️ Support:  38500

FBM KLCI: 1,612.94 pts (+0.59pts, +0.04%)
⬆️ Resistance:  1650
⬇️ Support:  1560

HSI Index: 17,109.14 pts (-4.22pts, -0.02%)
⬆️ Resistance:  17700
⬇️ Support:  16600

Crude Palm Oil: RM3,696 (+RM36, +0.97%)
⬆️ Resistance:  3850
⬇️ Support:  3570

Brent Oil: $81.04 (+$1.28, +1.60%)
⬆️ Resistance:  84.10
⬇️ Support:  77.20

Gold: $2,456.79 (-$1.70, -0.07%)
⬆️ Resistance:  2530
⬇️ Support:  2370

M+ Market update – 16 Aug 24
Focusing On Malaysia GDP Data

Most indices turned negative, except for the FBM KLCI, which managed to recover marginally at the end of the session due to buying support in banking heavyweights. Meanwhile, US stock markets ended strongly after assessing declining US CPI and PPI data earlier this week, coupled with stronger-than-expected retail sales. This optimism brushed off economic recession concerns and raised expectations that the Fed will cut rates by 25 basis points in the upcoming September FOMC meeting. We believe this buying support may also return to local stocks. In the commodity markets, Brent oil rebounded in light of better-than-expected economic data, while gold prices trended higher above the USD2,450 zone. The CPO prices are trending sideways around RM3,600-3,700. 

Sectors Focus: With the positive setup in the US, we expect buying support to emerge within the local Technology sector. As we head into earnings season, we also favour the Construction, Property, Building Materials, and Utilities sectors, which are benefiting from data center and AI themes. Additionally, we believe banking stocks could trend higher ahead of the Malaysia GDP data, and the stronger ringgit is expected to benefit the Consumer sector.

Stocks to watch: 

Building Material: *SKBSHUT*, *ULICORP*, UNIQUE
Consumer: *AEON*, SDS
Shipping: MISC, *SYGROUP*
Financial: CIMB, *PBBANK*
Technology: MI

Source: M+

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