M+ Morning Market Buzz - 27Sep24

Dow Jones: 42,175.11 pts (+260.36pts, +0.62%)
⬆️ Resistance:  43200
⬇️ Support:  41100

FBM KLCI: 1,671.32 pts (-2.06pts, -0.12%)
⬆️ Resistance:  1710
⬇️ Support:  1630

HSI Index: 19,924.58 pts (+795.48pts, +4.16%)
⬆️ Resistance:  20400
⬇️ Support:  17700

Crude Palm Oil: RM4,152 (-RM3, -0.07%)
⬆️ Resistance:  4240
⬇️ Support:  3810

Brent Oil: $71.60 (-$1.86, -2.53%)
⬆️ Resistance:  77.40
⬇️ Support:  69.40

Gold: $2,672.38 (-$0.12, -0.00%)
⬆️ Resistance:  2740
⬇️ Support:  2540

M+ Market update – 27Sep24
Rebound May Be Seen In Small Cap

The FBMKLCI closed slightly lower as profit-taking emerged in selected index heavyweights, a key factor to watch will be the strength of the ringgit. Meanwhile, US stock markets ended positive, with both the Dow and S&P 500 charged to record highs as (i) Micron leading the tech sector higher, and (ii) US GDP growth exceeding expectations at 3.0% for 2Q. Traders will be closely monitoring the PCE index tonight and the non-farm payroll report next week. In the commodities market, Brent crude fell below USD74 as Saudi Arabia shifted its focus toward regaining market share, abandoning its previous USD100 price target. Meanwhile, gold surged above USD2,670 on expectations of a rate-cut environment. CPO prices traded near RM4,200 before closing lower at RM4,150.

Sector Focus: The ringgit has slightly weakened to RM4.14/USD from RM4.115/USD, offering some relief to export-related sectors such as Gloves and Technology. However, traders could also focus on Consumer stocks in view of elevated RM tone. In addition, sectors such as Construction, Building Materials, Property, and Utilities could be worth positioning for ahead of Budget 2025, especially with potential announcements on the KL-SG HSR project. Following the Invest Malaysia event in Johor, it should boost trading activity in Johor-themed counters.

Stocks to watch: 

Construction: GBGAQRS, *SSB8*, *SUNCON*
Technology: CUSCAPI, *HTPADU*, *KGB*
Consumer: *PWF*
Renewable Energy: *PEKAT*
Building Material: UNIQUE
Manufacturing: SENFONG

Source: M+

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