M+ Morning Market Buzz - 9Sep24

Dow Jones: 40,345.41 pts (-410.34pts, -1.01%)
⬆️ Resistance:  42400
⬇️ Support:  39500

FBM KLCI: 1,653.12 pts (-11.70pts, -0.70%)
⬆️ Resistance:  1720
⬇️ Support:  1620

HSI Index: 17,444.30 pts (-13.04pts, -0.07%)
⬆️ Resistance:  18300
⬇️ Support:  17000

Crude Palm Oil: RM3,898 (-RM19, -0.49%)
⬆️ Resistance:  4070
⬇️ Support:  3780

Brent Oil: $71.06 (+$0.46, +0.65%)
⬆️ Resistance:  79.20
⬇️ Support:  69.20

Gold: $2,497.41 (-$0.16, -0.01%)
⬆️ Resistance:  2580
⬇️ Support:  2430

M+ Market update – 9Sep24
Soft Labour Market Could Trigger Further Selling

The local market sentiment remained negative, with widespread selling pressure across the board. In the U.S., stocks also ended on a downbeat note after a weaker-than-expected labour market report; non-farm payrolls increased by just 142k, falling short of the 161k consensus estimate, leading to declines of 1-2.55% across the three major indices on Wall Street. However, the unemployment rate edged down to 4.2%, in line with economists' expectations. In the commodity markets, Brent oil prices fell below USD 72, driven by concerns over the soft labour market and weaker demand from China. Meanwhile, gold prices held steady around USD 2,500, and crude palm oil prices traded near RM 3,900.

Sector Focus: Investors may continue rotating out of the technology sector in the US following softer guidance from NVIDIA and labour market weaknesses. Additionally, the strong ringgit could further weigh on local technology stocks, leading to more selling pressure. On the flip side, with the strong ringgit tone, we favour the Consumer, Building Material, Construction, and Property sectors, given their stable earnings visibility for the second half of 2024, supported by the NETR, NIMP, and ongoing data center projects.

Stocks to watch: 

Construction: *HAILY*, *INTA*, *PESONA*, SENDAI
Utility: *MALAKOF*
Consumer: *FFB*
Plantation: IOICORP 
Healthcare: KPJ

Source: M+

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