M+ Morning Market Buzz - 28 Aug 24

Dow Jones: 41,250.50 pts (+9.98pts, +0.02%)
⬆️ Resistance:  42300
⬇️ Support:  39800

FBM KLCI: 1,652.29 pts (+13.33pts, +0.81%)
⬆️ Resistance:  1690
⬇️ Support:  1610

HSI Index: 17,874.67 pts (+75.94pts, +0.43%)
⬆️ Resistance:  18300
⬇️ Support:  16900

Crude Palm Oil: RM3,923 (-RM14, -0.36%)
⬆️ Resistance:  4070
⬇️ Support:  3640

Brent Oil: $79.55 (-$1.88, -2.31%)
⬆️ Resistance:  83.30
⬇️ Support:  74.20

Gold: $2,524.64 (+$1.07, +0.04%)
⬆️ Resistance:  2580
⬇️ Support:  2430

M+ Market update – 28 Aug 24
All Eyes On Nvidia

The trading tone on the local front was mixed, with traders focusing on blue-chip stocks while avoiding small caps and lower liners. In the US, Wall Street ended slightly higher as consumer sentiment continued to improve in August, rising to 103.3 from 101.9 (revised) in July. However, gains were limited as investors remained cautious ahead of Nvidia’s earnings report. This week, investors will closely monitor key economic data, including (i) preliminary US GDP (Thu), (ii) unemployment claims (Thu), and (iii) core PCE data (Fri). In the commodity market, Brent oil declined by more than 2.3%, despite ongoing Middle East tensions and concerns over the oil fields shutdown in Libya. Gold prices remained above USD2,500, supported by expectations of an interest rate downcycle going forward, while CPO prices closed above RM3,900, driven by Indonesia’s plans for biodiesel policies.

Sector Focus: Despite the positive trading sentiment in the US, we believe local investors will focus on the ringgit's strength and earnings releases from INARI to gauge trading activity in the technology sector. The stronger ringgit environment is expected to benefit the Consumer, Construction, Banking, and Building Material sectors. Additionally, we anticipate bargain hunting in O&G stocks following the strong earnings releases.

Stocks to watch: 

Financial: *CIMB*, *MAYBANK*, PBBANK, *RCECAP*
Construction: *BNASTRA*, GAMUDA
O&G: *CARIMIN*
Consumer: AEON

Source: M+

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