M+ Morning Market Buzz - 3 Oct 24

Dow Jones: 42,196.52 pts (+39.55pts, +0.09%)
⬆️ Resistance:  43500
⬇️ Support:  41100

FBM KLCI: 1,639.31 pts (-17.08pts, -1.03%)
⬆️ Resistance:  1710
⬇️ Support:  1610

HSI Index: 22,443.73 pts (+1310.05pts, +6.20%)
⬆️ Resistance:  23200
⬇️ Support:  18800

Crude Palm Oil: RM4,196 (-RM48, -1.14%)
⬆️ Resistance:  4290
⬇️ Support:  3910

Brent Oil: $73.90 (+$0.34, +0.46%)
⬆️ Resistance:  77.70
⬇️ Support:  68.60

Gold: $2,658.69 (+$1.28, +0.05%)
⬆️ Resistance:  2740
⬇️ Support:  2580

M+ Market update – 3 Oct 24
Middle East And Non-Farm Payroll In Focus

Amid rising tensions in the Middle East, the local stock exchange was negatively affected, with the FBM KLCI dropping more than 1%. Meanwhile, attention remained on China and Hong Kong markets, as the Chinese government rolled out several stimulus packages to boost the economy and stock markets. In the US, Wall Street managed to eke out marginal gains, with ADP non-farm employment data coming in better than expected. However, the upside was minimal, as market participants traded cautiously ahead of September’s payroll data. In the commodities market, Brent crude oil remained firm, trading above USD74 due to Middle East tension, but upside was limited due to larger-than-expected build up in US oil inventories. Gold prices hovered around the USD2,660 mark, while CPO prices stabilized above the RM4,150 level.

Sector Focus: Although Wall Street saw slight gains, we expect negative sentiment to persist on the local front ahead of the US non-farm payroll data. The current range of the ringgit is likely to benefit domestic-driven sectors such as Consumer. As we approach Budget 2025, we suggest investors position themselves in the Construction, Property, and Utilities sectors. Also, Oracle's plan to establish a cloud region in Malaysia, with an investment exceeding USD6.5bn, should provide a boost to the Technology sector.

Stocks to watch: 

Technology: *CLOUDPT*, *EG*, HTPADU, *ITMAX*
Property: *MATRIX*
O&G: *DELEUM*
Consumer: QL
Healthcare: KPJ
Industrial Products: SENFONG

Source: M+

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