M+ Morning Market Buzz - 29 Aug 24

Dow Jones: 41,091.42 pts (-159.08pts, -0.39%)
⬆️ Resistance:  42300
⬇️ Support:  39800

FBM KLCI: 1,675.24 pts (+22.95pts, +1.39%)
⬆️ Resistance:  1720
⬇️ Support:  1610

HSI Index: 17,692.45 pts (-182.22pts, -1.02%)
⬆️ Resistance:  18300
⬇️ Support:  17100

Crude Palm Oil: RM3,920 (-RM23, -0.59%)
⬆️ Resistance:  4070
⬇️ Support:  3670

Brent Oil: $78.65 (-$0.90, -1.13%)
⬆️ Resistance:  83.30
⬇️ Support:  74.30

Gold: $2,504.61 (+$2.97, +0.12%)
⬆️ Resistance:  2580
⬇️ Support:  2430

M+ Market update – 29 Aug 24
Nvidia Unable To Impress The Market

The local stock exchange saw mixed activity, with buying interest concentrated in blue chips and the banking sector, while investors offloaded small-cap shares, leading to negative market breadth. Despite NVIDIA's better-than-expected results, the stock traded lower in post-market sessions, suggesting that the AI-driven rally may be reaching lofty valuations and could face exhaustion in the near term. Key economic data releases this week include (i) preliminary US GDP (Thu), (ii) unemployment claims (Thu), and (iii) core PCE data (Fri). In the commodity market, Brent oil declined for the second session due to a smaller-than-expected drop in US inventories last week, while gold prices remained above USD2,500. CPO prices hovered just below RM3,900.

Sector Focus: Given NVIDIA's post-market decline, we anticipate selling pressure may build within local technology stocks, especially in light of the stronger ringgit. Meanwhile, foreign funds are expected to continue focusing on blue chips and liquid banking stocks in the near term. Additionally, the stronger ringgit could benefit the Consumer sector, as evidenced by Farm Fresh Berhad's positive earnings report.

Stocks to watch: 

Financial: BIMB, KENANGA, *RCECAP*, *TAKAFUL*
Plantation: *KMLOONG*, SDG
Consumer: *AEON*, *FFB*
Construction: BNASTRA
O&G: GASMSIA

Source: M+

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