M+ Morning Market Buzz - 30 Aug 24

Dow Jones: 41,335.05 pts (+243.63pts, +0.59%)
⬆️ Resistance:  42500
⬇️ Support:  40100

FBM KLCI: 1,653.55 pts (-21.69pts, -1.29%)
⬆️ Resistance:  1720
⬇️ Support:  1610

HSI Index: 17,786.32 pts (+93.87pts, +0.53%)
⬆️ Resistance:  18300
⬇️ Support:  17200

Crude Palm Oil: RM3,940 (+RM22, +0.56%)
⬆️ Resistance:  4070
⬇️ Support:  3720

Brent Oil: $79.94 (+$1.29, +1.64%)
⬆️ Resistance:  83.30
⬇️ Support:  75.50

Gold: $2,521.40 (-$0.21, -0.01%)
⬆️ Resistance:  2580
⬇️ Support:  2440

M+ Market update – 30 Aug 24
Nvidia May Dragged AI-theme

Sentiment on the local front turned negative as profit-taking emerged after strong foreign fund buying in the banking sector, while small-cap stocks remained weak. In the US, Wall Street had a mixed session, the Dow reached new highs, while the S&P and Nasdaq were weighed down by NVIDIA, which fell despite exceeding expectations. US preliminary GDP came in at 3.0%, and unemployment claims slightly declined to 231k (previous reading: 233k). Investors are now closely watching the core PCE data set to be released later tonight. In the commodity markets, Brent oil rebounded after a two-day decline, driven by a suspension of exports from Libya, while gold prices remained above USD2,500, reflecting potential interest rate cuts by September. CPO prices also bounced back, trading above RM3,900 with a positive outlook in the near term.

Sector Focus: With NVIDIA's decline impacting the overall technology sector, we anticipate further selling pressure on local technology stocks, especially given the stronger ringgit environment. However, the stronger ringgit could benefit the Consumer sector, as evidenced by FFB and Spritzer's improved performance this quarter. Additionally, during the corporate earnings season, several Property, Construction, and selected O&G stocks showed growth in their results.

Stocks to watch: 

Consumer: *FFB*, *SPRITZER*
Financial: AFFIN, *TAKAFUL*
Automotive: *BERMAZ*
O&G: *DELEUM*
Utility: MALAKOF
Telco: MAXIS

Source: M+

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