M+ Morning Market Buzz - 12Sep24

Dow Jones: 40,861.71 pts (+124.75pts, +0.31%)
⬆️ Resistance:  42000
⬇️ Support:  39200

FBM KLCI: 1,639.80 pts (-20.55pts, -1.24%)
⬆️ Resistance:  1720
⬇️ Support:  1610

HSI Index: 17,108.71 pts (-125.38pts, -0.73%)
⬆️ Resistance:  18000
⬇️ Support:  16700

Crude Palm Oil: RM3,901 (-RM31, -0.79%)
⬆️ Resistance:  4040
⬇️ Support:  3780

Brent Oil: $70.61 (+$1.42, +2.05%)
⬆️ Resistance:  75.70
⬇️ Support:  67.40

Gold: $2,511.76 (+$1.22, +0.05%)
⬆️ Resistance:  2580
⬇️ Support:  2440

M+ Market update – 12Sep24
Slight Uptick In Core CPI

Selling pressure was observed across the broader market, driven by the Petronas and Petros developments and weak Brent oil prices, causing small-cap stocks to dip further. In the U.S., Wall Street managed to trade off its lows despite a slight uptick in core CPI data, which came in at 0.3% compared to the 0.2% consensus. Although the CPI was largely in line with expectations, investors are now shifting their focus to the upcoming PPI data and the Federal Reserve's FOMC meeting next week. In the commodities market, Brent oil recovered above USD70 after inventories rose by 0.8 million barrels, slightly below the consensus of 0.9 million. Gold prices remained steady above USD2,500 as traders look ahead to the FOMC meeting. Meanwhile, crude palm oil continues to trade below RM3,900.

Sector Focus: With the strong rebound in the US and a modest recovery in Brent oil prices, we expect bargain hunting to emerge on the local market. However, the upside for local technology stocks may be limited due to the stronger ringgit. On the other hand, we favour domestic-driven sectors such as Consumer, Construction, Financials, Building Materials, and Utilities, which are likely to benefit from the stable ringgit environment.

Stocks to watch: 

Consumer: *FFB*, *LHI*, *SDS*
Utility: *MALAKOF*, TENAGA, PBA
Shipping: *M&G*
Property: MATRIX

Source: M+

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