M+ Morning Market Buzz - 23 Aug 24

Dow Jones: 40,712.78 pts (-177.71pts, -0.43%)
⬆️ Resistance:  41900
⬇️ Support:  39700

FBM KLCI: 1,641.66 pts (+6.34pts, +0.39%)
⬆️ Resistance:  1700
⬇️ Support:  1590

HSI Index: 17,641.00 pts (+249.99pts, +1.44%)
⬆️ Resistance:  18100
⬇️ Support:  16900

Crude Palm Oil: RM3,826 (-RM28, -0.73%)
⬆️ Resistance:  3910
⬇️ Support:  3590

Brent Oil: $76.05 (+$1.13, +1.49%)
⬆️ Resistance:  82.70
⬇️ Support:  74.20

Gold: $2,484.75 (+$0.57, +0.02%)
⬆️ Resistance:  2590
⬇️ Support:  2410

M+ Market update – 23 Aug 24
Focusing On The Ongoing Corporate Earnings

Local stocks traded mixed, with investors favouring large-cap stocks (FBM KLCI up 0.4%) while avoiding smaller-cap companies (FBM Small Cap down 0.8%). In the U.S., markets declined as all three major indices formed bearish engulfing patterns, driven by a surge in US 10-year Treasury yields above 3.8%. Traders are now focused on Jerome Powell’s speech at the Jackson Hole Symposium, looking for hints on the size of the expected rate cut in September. Additionally, new home sales data is due later tonight. In the commodity markets, Brent oil rebounded after a 4-day losing streak, supported by a drop in U.S. inventories by 4.6 million barrels last week. Meanwhile, gold prices fell below the USD2,500 level, awaiting further cues from the Jackson Hole Symposium, and CPO prices edged closer to the RM3,800 mark.

Sector Focus: Given Wall Street's negative performance overnight, we expect selling pressure to spill over to local stocks. However, investors are likely to focus on corporate earnings, especially in the O&G sector, which has seen strong results from ARMADA, DAYANG, PERDANA, and DELEUM. Healthcare stocks may also be in the spotlight following KOSSAN’s results and Thailand’s confirmation of the first Monkeypox case in Asia. We continue to favour the Consumer sector amid the stronger ringgit environment.

Stocks to watch: 

Technology: EG, HTPADU, *SMRT*
Consumer: SDS, *SPRITZER*
O&G: *ICON*
Construction: *INTA*
Renewable Energy: *TEXCYCL*
Building Material: JTGROUP
Plantation: UTDPLT

Source: M+

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