M+ Morning Market Buzz - 1 Oct 24

Dow Jones: 42,330.15 pts (+17.15pts, +0.04%)
⬆️ Resistance:  43500
⬇️ Support:  41100

FBM KLCI: 1,648.91 pts (-11.18pts, -0.67%)
⬆️ Resistance:  1710
⬇️ Support:  1620

HSI Index: 21,133.68 pts (+501.38pts, +2.43%)
⬆️ Resistance:  22000
⬇️ Support:  18200

Crude Palm Oil: RM3,995 (+RM17, +0.43%)
⬆️ Resistance:  4290
⬇️ Support:  3880

Brent Oil: $71.70 (+$0.16, +0.22%)
⬆️ Resistance:  77.40
⬇️ Support:  69.40

Gold: $2,634.58 (-$0.41, -0.02%)
⬆️ Resistance:  2740
⬇️ Support:  2580

M+ Market update – 1 Oct 24
Budget 2025 To Be Focused

Despite positive sentiment in China and Hong Kong, local stocks faced pressure, with selling interest building across the board. Meanwhile, in the US, the rally persisted as the Dow and S&P 500 reached new highs. Traders reacted to remarks from Jerome Powell, who indicated that if the economy evolves as expected, monetary policy would gradually shift towards a more neutral stance. The probability of a 25-basis-point rate cut by the FOMC in November jumped to 64%, up from 47% last Friday. Key upcoming events that traders will be closely monitoring include: ISM Manufacturing PMI, Non-farm payrolls, and Unemployment claims. In the commodities market, Brent crude oil traded below USD 72 as OPEC+ plans to increase oil production. Meanwhile, gold prices hovered near the USD 2,630 mark, and CPO prices, although retracing, remained above the significant RM,000 level.

Sector Focus: With China heading into the Golden Week holiday, we expect market activity to slowdown. As the USDMYR pair trades in the RM4.10 – 4.12/USD range, export-oriented sectors like Gloves and Technology may see limited upside, while domestic-driven Consumer stocks should benefit. Also, we favour the Construction, Property, Building Materials, and Utilities sectors in anticipation of catalysts such as the upcoming Budget 2025 and potential news surrounding the KL-SG HSR project.

Stocks to watch: 

Consumer: LHI, *MYNEWS*, *PWF*, QL
Technology: *ITMAX*
Property: *KSL*
Automotive *SENFONG*
REIT: SUNREIT
Construction: PESONA
Utility: MALAKOF

Source: M+

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