M+ Market update – 25Sep24
China Stimulus Packages To Shore Up Sentiment

The FBMKLCI rebounded after a 2-day sideways movement, as sentiment turned more bullish following China's release of a slew of stimulus packages to boost its struggling economy and markets. Meanwhile, the US stock markets shrugged off weaker-than-expected data from both (i) consumer confidence and (ii) the Richmond Manufacturing Index. Traders continued to push the markets higher, ending the session on a firmer note, with both the Dow and S&P500 charging toward record closings. In the commodities market, Brent oil rebounded above USD 75, while crude palm oil prices surged above RM4,000, driven by China's stimulus measures. Gold prices also rose, climbing above the USD2,650 zone.

Sector Focus: Given the positive sentiment from China, we expect a rebound in overall demand for commodities. Upside potential is likely within commodities-related sectors such as Oil & Gas, Plantation, and Building Materials. Additionally, strong buying support on Wall Street may spill over to local stocks, especially small-cap companies. We also see opportunities in Construction, Property, Consumer, and Manufacturing sectors amid the strong ringgit environment.

Stocks to watch: 

Construction: BNASTRA, GDB, *SSB8*, *SUNCON*
Property: KSL, *OSK*, SUNWAY
Building Material: *SCGBHD*
Manufacturing: *SENFONG*
Financial: BURSA

M+ Morning Market Buzz - 25Sep24

Dow Jones: 42,208.22 pts (+83.57pts, +0.20%)
⬆️ Resistance:  43200
⬇️ Support:  40700

FBM KLCI: 1,670.37 pts (+5.07pts, +0.30%)
⬆️ Resistance:  1710
⬇️ Support:  1630

HSI Index: 19,000.56 pts (+753.45pts, +4.13%)
⬆️ Resistance:  19400
⬇️ Support:  17300

Crude Palm Oil: RM3,988 (+RM55, +1.38%)
⬆️ Resistance:  4130
⬇️ Support:  3670

Brent Oil: $75.17 (+$1.27, +1.72%)
⬆️ Resistance:  77.40
⬇️ Support:  70.90

Gold: $2,657.10 (+$0.69, +0.03%)
⬆️ Resistance:  2720
⬇️ Support:  2500

Source: Bloomberg, M+

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