M+ Market update – 6Sep24
Sentiment Mixed Ahead Of Jobs Report

The negative sentiment persisted on the local front, leading to another round of broad-based sell-offs, with the technology sector being hit the hardest as the AI-driven rally fizzled out following Nvidia’s weaker guidance. Meanwhile, U.S. stock markets ended on a mixed note as August private payrolls grew by only 99k, the smallest increase since 2021 and well below the consensus estimate of 140k, signalling a weakening labour market. Looking ahead, traders will be closely monitoring the non-farm payroll report due later tonight, which could influence the extent of the interest rate reduction at the upcoming FOMC meeting. In the commodity markets, Brent oil remained below USD73 due to softer demand from China and the US, despite OPEC+ delayed a production hike for Oct and Nov. Gold prices remained above the USD2,500 level, and CPO prices hovered above RM3,900.

Sector Focus: We expect sentiment to remain negative on the local front, particularly within the technology sector, as the strong ringgit environment could lead to softer earnings going forward. Conversely, we favour select stocks within the Consumer, Construction, Building Materials, and Utilities sectors, which may benefit from the elevated ringgit. Additionally, we believe investors may focus on fundamentally solid companies with high dividend yields, given the current oversold conditions.

Stocks to watch: 

Consumer: *CCK*, LHI, *PWF*
Construction: *BNASTRA*, SENDAI
Plantation: *KMLOONG*, UTDPLT
Financial: *AMBANK*, BIMB
Building Material: SKBSHUT
Technology: HTPADU

M+ Morning Market Buzz - 6Sep24

Dow Jones: 40,755.75 pts (-219.22pts, -0.54%)
⬆️ Resistance:  42500
⬇️ Support:  39800

FBM KLCI: 1,664.82 pts (-5.42pts, -0.32%)
⬆️ Resistance:  1720
⬇️ Support:  1620

HSI Index: 17,444.30 pts (-13.04pts, -0.07%)
⬆️ Resistance:  18600
⬇️ Support:  17000

Crude Palm Oil: RM3,917 (+RM23, +0.59%)
⬆️ Resistance:  4090
⬇️ Support:  3780

Brent Oil: $72.69 (-$0.01, -0.01%)
⬆️ Resistance:  82.30
⬇️ Support:  71.00

Gold: $2,516.76 (+$0.79, +0.03%)
⬆️ Resistance:  2580
⬇️ Support:  2430

Source: Bloomberg, M+

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