M+ Morning Market Buzz - 20Sep24

Dow Jones: 42,025.19 pts (+522.09pts, +1.26%)
⬆ Resistance:  43100
⬇ Support:  40400

FBM KLCI: 1,665.65 pts (+5.06pts, +0.30%)
⬆ Resistance:  1700
⬇ Support:  1610

HSI Index: 18,013.16 pts (+353.14pts, +2.00%)
⬆ Resistance:  18500
⬇ Support:  16900

Crude Palm Oil: RM3,876 (+RM18, +0.46%)
⬆ Resistance:  4050
⬇ Support:  3630

Brent Oil: $74.88 (-$0.11, -0.15%)
⬆ Resistance:  76.70
⬇ Support:  70.10

Gold: $2,586.74 (+$0.40, +0.02%)
⬆ Resistance:  2660
⬇ Support:  2500

M+ Market update – 20Sep24
Broad Market Cheered The Rate Cut

Overall, the local market reacted positively, cheering the Fed's interest rate cut in the recent FOMC meeting. In the US, Wall Street also rebounded sharply after cautious trading in the previous session, as weekly unemployment claims came in below expectations at 219k vs consensus estimates of 230k. Besides, traders reassessed the rate cut, shifting the narrative from recession concerns to extending economic expansion by the Fed. In the commodities market, Brent oil continued to rebound due to lower US inventories and rising tensions in the Middle East. Gold prices edged closer to USD2,600 following the US rate cut. Meanwhile, crude palm oil traded near RM3,900 amid production concerns in Malaysia.

Sector Focus: As Wall Street surged to new highs following the rate cut, we expect the local Technology sector to follow suit. Meanwhile, with the stronger ringgit persisting, sectors such as Consumer, Utilities, Financial, and Automotive are likely to benefit. Additionally, we believe earnings from data center projects will start materializing in the next few quarters, so Construction, Building Materials, and Property sectors could perform well heading into 2025.

Stocks to watch: 

Construction: INTA, *SENDAI*, SSB8
Building Material: *MNHLDG*, SKBSHUT
Technology: *SKPRES*
Financial: *RCECAP*
O&G: *DELEUM*
Consumer: PWF
Shipping: SEALINK
Property: ECOWLD

Source: M+

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