M+ Morning Market Buzz - 18Sep24

Dow Jones: 41,550.06 pts (-15.90pts, -0.17%)
⬆ Resistance:  42700
⬇ Support:  39200

FBM KLCI: 1,664.28 pts (+12.13pts, +0.73%)
⬆ Resistance:  1700
⬇ Support:  1610

HSI Index: 17,660.02 pts (+237.90pts, +1.37%)
⬆ Resistance:  18100
⬇ Support:  16700

Crude Palm Oil: RM3,736 (+RM31, +0.83%)
⬆ Resistance:  4040
⬇ Support:  3630

Brent Oil: $72.75 (+$0.95, +1.51%)
⬆ Resistance:  75.80
⬇ Support:  67.70

Gold: $2,582.45 (+$5.24, -0.55%)
⬆ Resistance:  2650
⬇ Support:  2460

M+ Market update – 18Sep24
Eyes on the Fed's Next Move

The FBMKLCI gained momentum, driven by strength in banking and healthcare heavyweights. Investors also shifted focus to glove companies after the U.S. Trade Representative (USTR) imposed higher tariffs on Chinese products like gloves and electric vehicles (EVs). Meanwhile, Wall Street traded mixed ahead of the FOMC meeting, with investors awaiting the Fed’s decision following August retail sales, which came in at 0.1%, beating the -0.2% consensus. In the commodities market, Brent oil extended its rebound due to supply disruptions from Hurricane Francine and potential declines in oil exports from Libya. Gold prices remained near record highs, holding above USD2,570. Crude palm oil, however, slipped below RM3,800, pressured by the strong ringgit and India’s decision to raise taxes on edible oils.

Sector Focus: We expect continued focus on the healthcare sector, with higher U.S. tariffs benefiting glove manufacturers, and Malaysia confirming its first Mpox case, which could boost trading in glove and hospital stocks. Given the strong ringgit, we favour sectors like Consumer, Utilities, Financials, and Automotive. Additionally, we believe ongoing data center projects will benefit the Construction sector, while the Johor-Singapore Special Economic Zone should provide a boost to the Property sector.

Stocks to watch: 

Consumer: *LHI*, *PWF*
Utility: *MALAKOF*, PEKAT
Construction: BNASTRA, GAMUDA
Automotive: *BETA*
Healthcare: *KPJ*
Financial: CIMB
Property: ECOWLD

Source: M+

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