M+ Morning Market Buzz - 13Sep24

Dow Jones: 41,096.77 pts (+235.06pts, +0.58%)
⬆️ Resistance:  42000
⬇️ Support:  39200

FBM KLCI: 1,638.31 pts (-1.49pts, -0.09%)
⬆️ Resistance:  1710
⬇️ Support:  1610

HSI Index: 17,240.39 pts (+131.68pts, +0.77%)
⬆️ Resistance:  17700
⬇️ Support:  16700

Crude Palm Oil: RM3,852 (+RM24, +0.62%)
⬆️ Resistance:  4040
⬇️ Support:  3760

Brent Oil: $71.97 (+$1.36, +1.93%)
⬆️ Resistance:  75.10
⬇️ Support:  67.40

Gold: $2,557.90 (+$1.17, +0.05%)
⬆️ Resistance:  2620
⬇️ Support:  2440

M+ Market update – 13Sep24
Looking Forward To FOMC Meeting

The FBMKLCI declined marginally, but the Small Cap index managed to rebound as bargain hunting activities emerged in tandem with the crude oil price. Meanwhile, Wall Street managed to trade higher for the fourth session, despite core PPI data came in slightly above consensus estimates at 0.3%. Unemployment claims were also modestly higher, which gave rise to the market to continue speculate that the Fed will be introducing a rate cut next week. At this juncture, the expectation of the cut is at least 25 bps. In the commodities market, Brent oil continues to rebound, traded above USD72 as Hurricane Francine’s may affect the supply in the near term, while the gold price shot towards new high above the USD2555 level awaiting the rate cut next week. The crude palm oil was positive but still below RM3,900.

Sector Focus: The rebound in the US may spillover to stocks on the local front, specifically in the tech sector as they are significantly oversold, but upside may be capped due to the strong ringgit environment, where the earnings may be softer in the upcoming quarters. Meanwhile, on the flip side, the elevated RM tone could help our domestic sector such as Consumer, Financial and selected Utilities. We also favour Construction and Building Materials as we believe the data center projects may start to materialise into earnings of the construction sector going forward.

Stocks to watch: 

Consumer: FFB, *LHI*
Financial: *AMBANK*
Automotive: *BETA*
Technology: *HTPADU*
Utility: *PBA*
Shipping: M&G
Property: SUNWAY

Source: M+

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