M+ Morning Market Buzz - 2 Oct 24

Dow Jones: 42,330.15 pts (-173.18pts, +0.04%)
⬆️ Resistance:  43500
⬇️ Support:  41100

FBM KLCI: 1,648.91 pts (+7.48pts, +0.45%)
⬆️ Resistance:  1710
⬇️ Support:  1620

HSI Index: 21,133.68 pts (+501.38pts, +2.43%)
⬆️ Resistance:  22000
⬇️ Support:  18700

Crude Palm Oil: RM4,006 (+RM72, +0.35%)
⬆️ Resistance:  4290
⬇️ Support:  3910

Brent Oil: $71.70 (+$1.86, -2.33%)
⬆️ Resistance:  77.00
⬇️ Support:  68.60

Gold: $2,634.58 (-$0.46, +0.51%)
⬆️ Resistance:  2740
⬇️ Support:  2580

M+ Market update – 2 Oct 24
Middle East Tensions Could Limit Gains

The FBM KLCI and FBM Small Cap rebounded accompanied by softer trading volume at the start of Golden Week, as China enters a week-long holiday. Meanwhile, US stocks declined, partly due to Iran's missile attack on Israel, which contributed to the tensions in the Middle East. We expect this selling pressure may spill over to the local market, limiting gains in the near term. Key events traders will be monitoring include non-farm payrolls and unemployment claims. In the commodities market, Brent crude oil spiked over 3% to USD 74, and gold surged above USD 2,660 due to the rising Middle East tensions. CPO prices also gained momentum, surpassing the RM 4,070 level.

Sector Focus: With the USDMYR weakening to RM 4.15/USD, export-oriented sectors like Gloves and Technology may see a mild rebound. However, the current ringgit range should benefit domestically driven sectors like Consumer. In October, we believe traders may focus on Construction, Property, and Utilities sectors ahead of Malaysia's Budget 2025, while keeping an eye on potential news about the KL-Singapore HSR project.

Stocks to watch: 

Property: IOIPG, *KSL*, MAHSING, *MATRIX*
Consumer: *MYNEWS*, *PWF*
Technology: *CLOUDPT*, SKPRES
O&G: GASMSIA
Industrial Products: SENFONG

Source: M+

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