M+ Morning Market Buzz - 27 Aug 24

Dow Jones: 41,240.52 pts (+65.44pts, +0.16%)
⬆️ Resistance:  42300
⬇️ Support:  39800

FBM KLCI: 1,638.96 pts (+3.22pts, +0.20%)
⬆️ Resistance:  1700
⬇️ Support:  1610

HSI Index: 17,798.73 pts (+186.63pts, +1.06%)
⬆️ Resistance:  18200
⬇️ Support:  16900

Crude Palm Oil: RM3,924 (+RM9, +0.23%)
⬆️ Resistance:  4070
⬇️ Support:  3630

Brent Oil: $81.43 (+$2.41, +3.05%)
⬆️ Resistance:  83.30
⬇️ Support:  74.20

Gold: $2,518.03 (-$0.58, -0.02%)
⬆️ Resistance:  2590
⬇️ Support:  2430

M+ Market update – 27 Aug 24
Mild Profit Taking Activities Across The Board

Trading activity on the local front was positive, with most sub-indices closing higher. Despite the Fed's dovish stance at the recent Jackson Hole Symposium, sentiment on Wall Street was mixed, with profit-taking observed in the Technology sector. Investors will be closely monitoring key economic data this week, including (i) consumer confidence (today), (ii) preliminary US GDP (Thu), (iii) unemployment claims (Thu), and (iv) core PCE data (Fri). In the commodity market, Brent oil rebounded further, rising above USD81 amid increasing geopolitical tensions and expectations of lower interest rates boosting economic activity. Gold prices remained stable above USD2,500, while CPO prices surged past RM3,900 as Indonesia aims to implement 50% palm-based biodiesel blending by 2025.

Sector Focus: With the slight pullback in Wall Street’s tech sector, we anticipate selling pressure could emerge locally, particularly in tech companies, as the ringgit strengthens. However, the stronger ringgit may positively impact the Consumer, Construction, and Financial sectors. Additionally, the Property sector could benefit from the news of Tropicana’s land sale to a data center provider.

Stocks to watch: 

Construction: *BNASTRA*, *GAMUDA*, INTA
Property: *CRESNDO*, MAHSING
Consumer: SDS, *SPRITZER*
Financial: CIMB, MNRB
Power and Telco-related: *SMRT*
Plantation: UTDPLT

Source: M+

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