M+ Morning Market Buzz - 8 Nov 24

Dow Jones: 43,729.34 pts (-0.59pts, -0.00%)
⬆️ Resistance:  44700
⬇️ Support:  40900

FBM KLCI: 1,623.28 pts (-10.89pts, -0.67%)
⬆️ Resistance:  1680
⬇️ Support:  1560

HSI Index: 20,953.34 pts (+414.96pts, +2.02%)
⬆️ Resistance:  21500
⬇️ Support:  20000

Crude Palm Oil: RM4,952 (+RM46, +0.93%)
⬆️ Resistance:  5120
⬇️ Support:  4660

Brent Oil: $74.92 (+$0.57, +0.76%)
⬆️ Resistance:  77.80
⬇️ Support:  71.50

Gold: $2,706.71 (-$0.07, -0.00%)
⬆️ Resistance:  2820
⬇️ Support:  2600

M+ Market update – 8Nov24
Trump Sentiment Remained Strong

Sentiment on the local bourse shifted as profit-taking activities emerged. Despite US jobless claims coming in above consensus, Wall Street continued to rally, driven by ongoing optimism following Donald Trump’s victory and the Fed’s 25 bps rate cut. Looking ahead, we anticipate stronger-than-expected sentiment in the US, bolstered by expected corporate tax cuts, while remaining cautiously optimistic on the local front. Also, the interest rate spread between the US and Malaysia may support the ringgit, albeit at a more moderate pace. In the commodities market, Brent crude oil traded flat around USD 75 per barrel. Meanwhile, gold prices rebounded above USD 2,700 following the Fed’s rate cut. CPO prices continued to rally, closing near the RM 5,000 level.

Sector Focus: With Wall Street reaching new highs, fuelled by the positive “Trump sentiment” and the rate cut, we expect buying interest to spill over into the local market, particularly in the Technology sector as the ringgit environment still favours the export-driven companies. Additionally, as we approach earnings season, we believe that earlier data center projects will begin contributing to earnings. As a result, we expect sectors such as Construction, Building Materials, and Property to perform well in the near term.

Stocks to watch: 

Construction: *BNASTRA*, SSB8
Technology: *ITMAX*, SKPRES
Consumer: *FFB*
Plantation: *JTIASA*
Healthcare: *KPJ*
Building Material: MNHLDG
Finance: RCECAP

Source: M+

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