M+ Morning Market Buzz - 3Sep24

Dow Jones: 41,563.08 pts (+228.03pts, +0.55%)
⬆️ Resistance:  42500
⬇️ Support:  40100

FBM KLCI: 1,678.19 pts (-0.61pts, -0.04%)
⬆️ Resistance:  1720
⬇️ Support:  1610

HSI Index: 17,691.97 pts (-297.10pts, -1.65%)
⬆️ Resistance:  18600
⬇️ Support:  17200

Crude Palm Oil: RM3,933 (-RM1, -0.03%)
⬆️ Resistance:  4090
⬇️ Support:  3800

Brent Oil: $77.52 (+$0.59, +0.77%)
⬆️ Resistance:  83.30
⬇️ Support:  74.70

Gold: $2,499.51 (-$2.13, -0.09%)
⬆️ Resistance:  2580
⬇️ Support:  2450

M+ Market update – 3Sep24
Reshuffling Into Small Caps

The local market ended on a mixed note, with the FBM KLCI closing slightly lower, while the attention has shifted to small caps and lower liners. Meanwhile, the US stock markets were closed for a public holiday. With flat performances in European markets and several key economic data releases, such as ISM Manufacturing and jobs data, due this week, traders may remain cautious in the near term. Currently, the market expects a 25 bps rate cut in this FOMC meeting. In the commodity markets, Brent oil rebounded as oil exports at Libyan ports were halted on Monday, and production was reduced across the country. Gold prices continue to trade sideways around the USD 2,500 mark, while CPO prices remain above the RM 3,900 level.

Sector Focus: We expect the heavy selling in small caps seen in August to be overdone, with lower liners likely to recover in September while heavyweights may take a breather. Given the stronger ringgit performance over the past few months, sectors such as Consumer, Construction, Building Materials, and Property may benefit. We also favour stocks with strong fundamentals and growing earnings in their recent results.

Stocks to watch: 

Consumer: *FFB*, *LHI*, PWF, SDS
Construction: BNASTRA, *SSB8*
Building Material: *SCGBHD*
Property: *KSL*
Financial: MAYBANK

Source: M+

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