M+ Morning Market Buzz - 5Sep24

Dow Jones: 40,974.97 pts (+38.04pts, +0.09%)
⬆️ Resistance:  42500
⬇️ Support:  40000

FBM KLCI: 1,670.24 pts (-6.41pts, -0.38%)
⬆️ Resistance:  1720
⬇️ Support:  1620

HSI Index: 17,457.34 pts (-194.15pts, -1.10%)
⬆️ Resistance:  18600
⬇️ Support:  17000

Crude Palm Oil: RM3,886 (-RM23, -0.59%)
⬆️ Resistance:  4090
⬇️ Support:  3790

Brent Oil: $72.70 (-$1.05, -1.42%)
⬆️ Resistance:  82.40
⬇️ Support:  71.00

Gold: $2,495.72 (+$0.49, +0.02%)
⬆️ Resistance:  2580
⬇️ Support:  2430

M+ Market update – 5Sep24
US Stock Markets Started Sept In A Weaker Tone

Overall, sentiment on the local front ended on a negative note with broad-based sell-offs, following a weak start in the US stock markets. However, foreign funds remained net buyers on the Bursa exchange. Meanwhile, Wall Street began September on a weaker footing, with the S&P and Nasdaq experiencing consecutive declines, driven by amplified selling in the technology sector after softer JOLTS openings and ISM Manufacturing PMI data. Traders will be closely watching the unemployment claims data later tonight and the non-farm payroll report due on Friday. In the commodity markets, Brent oil extended its decline due to weaker economic growth in China, while on the supply side, OPEC may increase production in Q4. Gold prices continued trading around the USD 2,500 level, and CPO prices fell below RM 3,900.

Sector Focus: Given the ongoing negative sentiment in the US technology sector, we anticipate further selling pressure on local tech stocks. Additionally, the strong ringgit could exacerbate the situation. On the positive side, the strong ringgit may benefit sectors like Consumer, Construction, Building Materials, and Utilities. Investors may also re-assess fundamentally solid small-cap stocks after last month’s market rout and the current oversold conditions.

Stocks to watch: 

Consumer: FFB, *LHI*
Construction: *BINASTRA*, PESONA
Technology: *HTPADU*, *SKPRES*
Financial: *RCECAP*
O&G: DELEUM
Automotive: BETA

Source: M+

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