M+ Morning Market Buzz - 17Sep24

Dow Jones: 41,622.08 pts (+228.30pts, +0.55%)
⬆️ Resistance:  42600
⬇️ Support:  39200

FBM KLCI: 1,652.15 pts (+13.84pts, +0.84%)
⬆️ Resistance:  1700
⬇️ Support:  1610

HSI Index: 17,422.12 pts (+53.03pts, +0.31%)
⬆️ Resistance:  17900
⬇️ Support:  16700

Crude Palm Oil: RM3,775 (-RM35, -0.92%)
⬆️ Resistance:  4040
⬇️ Support:  3730

Brent Oil: $72.75 (+$1.14, +1.59%)
⬆️ Resistance:  74.90
⬇️ Support:  67.40

Gold: $2,582.45 (+$0.83, +0.03%)
⬆️ Resistance:  2650
⬇️ Support:  2460

M+ Market update – 17Sep24
Focusing On The Upcoming FOMC Meeting

The FBMKLCI rebounded last week, alongside broader market gains and small-cap stocks, as sentiment improved following a recovery in crude oil prices. In the US, Wall Street ended on a mixed note: the Dow reached record highs, while the Nasdaq saw a slight decline as tech stocks lagged ahead of the upcoming FOMC meeting. Traders appear to be pricing in a potential 50bps interest rate cut, aimed at steering the economy towards a soft landing. This week, traders will be focusing on the US retail sales, while the buying momentum may extend on local front. In the commodities market, Brent oil extended its recovery due to potential production cuts in the Gulf of Mexico, while gold surged to a record high above USD 2,580 as the market anticipates the rate cut this week. On the other hand, crude palm oil closed lower, nearing RM3,800.

Sector Focus: The Nasdaq's softer performance, combined with the stronger ringgit at RM4.298/USD, may negatively impact sentiment in the technology sector. However, the strong ringgit could support domestic sectors such as Consumer and Utilities. Additionally, we see potential in Construction, Property, and Building Materials, as earnings from data center projects may start to materialize moving forward.

Stocks to watch: 

Consumer: *LHI*, MAGNI
Building Material: *MNHLDG*, SKBSHUT
Construction: MRCB, *SENDAI*
Utility: PBA, *PEKAT*
Property: KSL, *OSK*

Source: M+

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