M+ Morning Market Buzz - 20 Aug 24

Dow Jones: 40,896.53 pts (+236.77pts, +0.58%)
⬆️ Resistance:  41800
⬇️ Support:  38700

FBM KLCI: 1,648.70 pts (+24.80pts, +1.53%)
⬆️ Resistance:  1690
⬇️ Support:  1570

HSI Index: 17,569.57 pts (+139.41pts, +0.80%)
⬆️ Resistance:  18100
⬇️ Support:  16600

Crude Palm Oil: RM3,721 (+RM5, +0.13%)
⬆️ Resistance:  3840
⬇️ Support:  3570

Brent Oil: $77.66 (-$2.02, -2.54%)
⬆️ Resistance:  84.00
⬇️ Support:  76.00

Gold: $2,504.28 (-$1.32, -0.05%)
⬆️ Resistance:  2570
⬇️ Support:  2390

M+ Market update – 20 Aug 24
Expecting Stronger Earnings Season Ahead

The Bursa Exchange ended on a positive note, driven by banking heavyweights following Malaysia's strong GDP data last Friday. We anticipate that buying support may extend in anticipation of a stronger earnings season this month. Meanwhile, US stock markets recorded their longest recovery streak in 2024, with the three major indices gaining between 0.58%-1.39%, driven by economic data indicating declining inflationary pressure and improved retail sales and consumer sentiment. Traders are now focused on the upcoming Jackson Hole meeting, where the Fed may offer clues on the timing of the next rate cut. In the commodity markets, Brent oil continued to retrace amid ongoing concerns over weak demand from China, while gold remained above USD2,500 in anticipation of a potential rate cut. CPO prices, meanwhile, trended sideways aroundRM3,700.

Sector Focus: Given the positive overnight performance on Wall Street, we expect buying interest to emerge on the local front. IJM’s win of a data center project could boost sentiment in the Construction, Property, Building Materials, and Utilities sectors. Banking stocks may continue their upward trend due to stronger earnings, while the stronger ringgit should benefit Consumer and Shipping stocks in general.

Stocks to watch: 

Building Material: *HUMEIND*, PWRWELL, *ULICORP*
O&G: *DAYANG*
Gold-related: *TOMEI*
Shipping: *ICON*
Consumer: TEOSENG
Construction: BNASTRA
Renewable: PEKAT
Technology: PIE

Source: M+

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