M+ Market update – 30Sep24
Turning The Focus Towards Malaysia Budget 2025

The FBMKLCI and FBM Small Cap indices ended lower last Friday as selling pressure persisted amid a stronger ringgit environment. Following mixed US inflation data, where PCE declined 2.2% YoY while core PCE rose 2.7% YoY, Wall Street closed on a mixed note. The Dow advanced to new highs, but both the S&P 500 and Nasdaq declined. This week, traders will be closely watching the (i) ISM manufacturing PMI, (ii) non-farm payroll, and (iii) unemployment claims. Additionally, we expect the impact of China’s stimulus packages to offer limited upside, following last week’s strong surge. In the commodities market, Brent crude traded around USD72 as China's stimulus measures offset planned OPEC+ supply increases. Meanwhile, gold hovered around USD2,660, supported by dovish signals from central banks. CPO prices retraced but still above RM4,000 as the stronger ringgit kept the rally in check.

Sector Focus: Given the stronger ringgit, export-oriented sectors such as Gloves and Technology may see limited upside. However, the stronger ringgit is expected to benefit domestically-driven sectors like Consumer. The Construction, Property, Building Materials, and Utilities sectors are likely to gain momentum from data center developments and Johor-themed catalysts in the near term. We believe investors may begin positioning within these sectors ahead of Budget 2025.

Stocks to watch: 

Construction: GAMUDA, *SUNCON*
Consumer: *HPPHB*, TEOSENG
Property: *ECOWLD*
Healthcare: *KPJ*
Financial: *MNRB*
Manufacturing: SENFONG
Renewable Energy: BMGREEN
Building Material: CHB

M+ Morning Market Buzz - 30Sep24

Dow Jones: 42,313.00 pts (+137.89pts, +0.33%)
⬆️ Resistance:  43500
⬇️ Support:  41100

FBM KLCI: 1,660.09 pts (-11.23pts, -0.67%)
⬆️ Resistance:  1710
⬇️ Support:  1630

HSI Index: 20,632.30 pts (+707.72pts, +3.55%)
⬆️ Resistance:  21200
⬇️ Support:  17900

Crude Palm Oil: RM4,051 (-RM101, -2.43%)
⬆️ Resistance:  4290
⬇️ Support:  3880

Brent Oil: $71.98 (-$0.12, -0.17%)
⬆️ Resistance:  77.40
⬇️ Support:  69.40

Gold: $2,658.24 (+$5.70, +0.21%)
⬆️ Resistance:  2740
⬇️ Support:  2570

Source: Bloomberg, M+

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