M+ Morning Market Buzz - 4Sep24

Dow Jones: 40,936.93 pts (-626.15pts, -1.51%)
⬆️ Resistance:  42500
⬇️ Support:  40000

FBM KLCI: 1,676.65 pts (-1.54pts, -0.09%)
⬆️ Resistance:  1720
⬇️ Support:  1620

HSI Index: 17,651.49 pts (-40.48pts, -0.23%)
⬆️ Resistance:  18600
⬇️ Support:  17200

Crude Palm Oil: RM3,931 (-RM20, -0.51%)
⬆️ Resistance:  4090
⬇️ Support:  3800

Brent Oil: $73.75 (-$3.77, -4.86%)
⬆️ Resistance:  82.40
⬇️ Support:  72.10

Gold: $2,492.91 (+$0.42, +0.02%)
⬆️ Resistance:  2580
⬇️ Support:  2430

M+ Market update – 4Sep24
Sentiment Dragged By Nvidia

The Bursa exchange ended on a mixed note as traders shifted their focus from heavyweights to small-cap and lower-liner stocks. In the US, stock markets closed significantly lower, dragged down by Nvidia, which saw nearly 10% of its value, or USD 279 billion, wiped out in a single session. Additionally, ISM manufacturing data came in at 47.2, indicating continued contraction in business activity for August. Looking ahead, traders will be closely watching several jobs reports, with the non-farm payroll data for August set to be released on Friday. In the commodity markets, Brent oil dropped sharply due to weak economic data from China, while gold prices continued to trade sideways around the USD2,500 mark. CPO prices remained above the RM3,900 level.

Sector Focus: With negative sentiment prevailing in the US, we anticipate selling pressure in the local Technology sector. However, we see potential in sectors benefiting from a stronger ringgit, such as Consumer, Construction, Building Materials, and Utilities. Additionally, we favour stocks with strong fundamentals, growing earnings, and high dividend yields.

Stocks to watch: 

Consumer: *LHI*, SDS
Construction: *BNASTRA*, *SSB8*
O&G: *DELEUM*
Automotive: *BETA*
Technology: ITMAX

Source: M+
 

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