M+ Morning Market Buzz - 11Sep24

Dow Jones: 40,736.96 pts (-92.63pts, -0.23%)
⬆️ Resistance:  42000
⬇️ Support:  39500

FBM KLCI: 1,660.35 pts (+8.86pts, +0.54%)
⬆️ Resistance:  1720
⬇️ Support:  1610

HSI Index: 17,234.09 pts (+37.13pts, +0.22%)
⬆️ Resistance:  18000
⬇️ Support:  16800

Crude Palm Oil: RM3,885 (-RM17, -0.44%)
⬆️ Resistance:  4040
⬇️ Support:  3780

Brent Oil: $69.19 (-$2.65, -3.69%)
⬆️ Resistance:  76.30
⬇️ Support:  67.40

Gold: $2,516.73 (+$0.03, +0.00%)
⬆️ Resistance:  2580
⬇️ Support:  2430

M+ Market update – 11Sep24
Harris-Trump Debate and Inflation Data in Focus

The Bursa Exchange rebounded, led by the FBM KLCI, following strong buying interest in banking heavyweights. However, the small-cap index remained in negative territory for the session. Meanwhile, U.S. stock markets ended mixed, with the Dow declining while technology stocks rebounded ahead of key inflation data, CPI and PPI—to be released tonight and tomorrow, respectively. Investors will likely keep a close watch on the developments in the Harris-Trump presidential debate, as it could provide insights into which sectors to focus on. In the commodity markets, Brent oil continued to fall, breaking below USD70 due to concerns over China’s slowing economy and growing recession fears. Gold prices surged above USD 2,500 as traders anticipated a Fed rate cut next week. Crude palm oil prices also dropped, trading below RM3,900.

Sector Focus: Despite the rebound in US technology stocks, we believe the local technology sector may face headwinds due to the strengthening ringgit. Also, GTRONIC’s auditor resignation presents a potential affect the sentiment for the sector. On the flip side, we favour sectors that benefit from a stronger ringgit, such as Consumer and Financials. We are also positive on selected Construction and Building Materials stocks, supported by the data center segment.

Stocks to watch: 
Financial: CIMB, *RCECAP*
Consumer: *LHI*, *SDS*
O&G: *DELEUM*
Building Material: MNHLDG
Construction: *PESONA*

Source: M+

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