M+ Morning Market Buzz - 21 Aug 24

Dow Jones: 40,834.97 pts (-61.56pts, -0.15%)
⬆️ Resistance:  41800
⬇️ Support:  39000

FBM KLCI: 1,642.77 pts (-5.93pts, -0.36%)
⬆️ Resistance:  1700
⬇️ Support:  1580

HSI Index: 17,511.08 pts (-58.49pts, -0.33%)
⬆️ Resistance:  18100
⬇️ Support:  16600

Crude Palm Oil: RM3,715 (+RM18, +0.48%)
⬆️ Resistance:  3840
⬇️ Support:  3570

Brent Oil: $77.20 (-$0.46, -0.59%)
⬆️ Resistance:  83.10
⬇️ Support:  75.10

Gold: $2,513.99 (-$0.46, -0.02%)
⬆️ Resistance:  2590
⬇️ Support:  2390

M+ Market update – 21 Aug 24
Ringgit Strengthening Beneficiary To Be Focused

Stocks on the Bursa Exchange were mixed, with only a few sectors like Banking, REITs, and Healthcare trading higher. Meanwhile, on Wall Street, the Nasdaq and S&P 500 retraced, snapping an 8-day winning streak, while the Dow closed slightly lower due to profit-taking ahead of the Jackson Hole Conference this Friday. We believe overall sentiment may weaken for stocks that rallied significantly in 1H24, as the market might consider their valuations overstretched ahead of earnings releases. In the commodity markets, Brent oil declined further due to softer demand from China and fading geopolitical tensions, while gold prices remained above USD2,500 ahead of the FOMC meeting. CPO prices continued to trend sideways around RM3,700.

Sector Focus: With the slight pullback on Wall Street, profit-taking may extend to local Technology stocks. Additionally, the strong ringgit could dampen interest in local tech companies. However, attention may shift to the Consumer, Building Material, Construction, Property, Renewable Energy, and Shipping sectors, given expectations of steadier earnings ahead of corporate results. Besides, the Monkeypox situation may be monitored for potential trading opportunities within Healthcare stocks.

Stocks to watch: 

Gold-related: *TOMEI*, YXPM
Consumer: *AEON*, *MRDIY*
Construction: *BNASTRA* 
Building Material: *MGB*
Technology: OPENSYS

Source: M+

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