M+ Morning Market Buzz - 18 Nov 24

Dow Jones: 43,444.99 pts (-305.87pts, -0.70%)
⬆️ Resistance:  45400
⬇️ Support:  42500

FBM KLCI: 1,592.44 pts (-8.24pts, -0.51%)
⬆️ Resistance:  1660
⬇️ Support:  1570

HSI Index: 19,426.34 pts (-9.47pts, -0.05%)
⬆️ Resistance:  21000
⬇️ Support:  19000

Crude Palm Oil: RM5,053 (+RM131, +2.66%)
⬆️ Resistance:  5310
⬇️ Support:  4730

Brent Oil: $71.04 (-$1.52, -2.09%)
⬆️ Resistance:  75.70
⬇️ Support:  69.40

Gold: $2,563.25 (+$6.56, +0.26%)
⬆️ Resistance:  2740
⬇️ Support:  2490

M+ Market update – 18 Nov 24
Softer Market Sentiment Expected

The FBMKLCI retreated below the 1,600 level despite Malaysia’s Q3 GDP recording a growth of 5.3% YoY. Extending last week’s global sell-offs, we expect most Asian stocks to start the week on a softer note, as investors price in the potential impact of Trump’s tariff policies potentially reigniting inflation and a slower interest rate easing cycle expected in 2025. This week, traders will monitor key events, including: (i) a speech by the BoJ Governor, (ii) NVIDIA’s earnings release, (iii) the G20 Summit in Brazil, and (iv) China’s loan prime rate announcements. In the commodities market, Brent crude oil retreated towards the USD70 level as OPEC+ lowered its oil demand outlook. Gold prices hovered around the USD2,570 level, while CPO prices traded below the RM5,000 psychological level due to a slowdown in exports.

Sector Focus: Amid a stronger dollar environment and slower Fed rate cut expectations, we believe investors may focus on the Technology and Glove sectors. With CPO prices remaining elevated, coupled with Indonesia’s biodiesel mandates, we maintain a positive outlook for the Plantation sector. Also, we favour the Construction, Property, and Building Materials sectors, supported by data center investments. We also see opportunities in selected East Malaysia counters following recent strong IPO performances.

Stocks to watch: 

Property: ECOWLD, *SUNWAY*, VLB
Technology: *EDARAN*, FRONTKN
Healthcare: *KAREX*, *KPJ*
Consumer: HUPSENG, LHI
O&G: *ARMADA*
Finance: BIMB

Source: M+

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