M+ Morning Market Buzz - 22 Aug 24

Dow Jones: 40,890.49 pts (+55.52pts, +0.14%)
⬆️ Resistance:  41800
⬇️ Support:  39500

FBM KLCI: 1,635.32 pts (-7.45pts, -0.45%)
⬆️ Resistance:  1700
⬇️ Support:  1580

HSI Index: 17,391.01 pts (-120.07pts, -0.69%)
⬆️ Resistance:  18100
⬇️ Support:  16600

Crude Palm Oil: RM3,754 (+RM7, +0.19%)
⬆️ Resistance:  3860
⬇️ Support:  3590

Brent Oil: $76.05 (-$1.15, -1.49%)
⬆️ Resistance:  83.10
⬇️ Support:  74.20

Gold: $2,512.56 (+$0.80, +0.03%)
⬆️ Resistance:  2590
⬇️ Support:  2390

M+ Market update – 22 Aug 24
Corporate Earnings Season May Provide Clarity

The local stock exchange ended on a mixed note as we head into a busy corporate earnings season. Profit-taking activities remained prevalent, in line with the regional markets’ performance. In the US, the nonfarm payroll saw a significant downward revision of 818k, the largest since 2009. However, market sentiment remained positive as the Fed minutes suggested a potential rate cut of at least 25 basis points in the upcoming FOMC meeting. Traders will continue to monitor key economic data, including unemployment claims, Flash Manufacturing PMI, and the Jackson Hole symposium on Friday. In the commodity markets, Brent oil declined further due to the payroll revision and softer demand from China, while gold prices held above USD2,500. CPO prices mildly rebounded, trading above RM3,700.

Sector Focus: With the positive performance on Wall Street, we may see spillover buying support in the local Technology sector. YTL-related stocks could also trade actively higher, driven by strong earnings momentum in the latest quarterly results. Additionally, the Monkeypox situation may provide a slight boost to Healthcare stocks. We also favour Consumer and Financial stocks due to the stronger ringgit environment.

Stocks to watch: 

Financial: PBBANK, *RCECAP*, RHBBANK
Construction: GAMUDA, *INTA*
Consumer: *AEON*
Automotive: *BETA*
Building Material: *MGB*

Source: M+

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