M+ Morning Market Buzz - 4 Oct 24

Dow Jones: 42,011.59 pts (-184.93pts, -0.44%)
⬆️ Resistance:  43500
⬇️ Support:  41100

FBM KLCI: 1,641.55 pts (+2.24pts, +0.14%)
⬆️ Resistance:  1710
⬇️ Support:  1600

HSI Index: 22,113.51 pts (-330.22pts, -1.47%)
⬆️ Resistance:  23200
⬇️ Support:  19900

Crude Palm Oil: RM4,182 (+RM42, +1.00%)
⬆️ Resistance:  4320
⬇️ Support:  3910

Brent Oil: $77.62 (+$3.72, +5.03%)
⬆️ Resistance:  79.60
⬇️ Support:  68.60

Gold: $2,655.89 (+$0.21, +0.01%)
⬆️ Resistance:  2730
⬇️ Support:  2580

M+ Market update – 4 Oct 24
Middle East Tension May Cap The Upside

The FBM KLCI had a volatile session, rebounding from negative territory to close on a positive note, driven by bargain hunting in banking heavyweights. In the US, Wall Street ended slightly lower after the release of mixed economic data. Jobless claims were rising, but the ISM services PMI showed expansion, and traders seem to be waiting for the non-farm payroll report due later tonight. In the commodities market, Brent crude surged by 4% amid growing concerns over developments in the Middle East, while gold prices remained steady around the USD 2,650 level. The CPO price broke above RM 4,200, signalling the start of an uptrend.

Sector Focus: With the ringgit weakened from RM 4.11/USD to RM 4.21/USD over the past four trading days, we believe traders may shift focus to export-oriented sectors like Technology and Gloves. However, we continue to favour the Consumer sector for its defensive nature. Additionally, the sharp rise in crude oil and CPO prices should benefit the Oil & Gas and Plantation sectors, respectively. Investors may also consider positioning in the Construction, Property, Building Materials, and Utilities sectors ahead of Budget 2025.
Stocks to watch: 

Consumer: FFB, *LHI*, *QL*
Technology: *CLOUDPT*, EG
O&G: *DELEUM*
Healthcare: *KPJ*
Property: SUNWAY
Finance: BIMB
Industrial Products: SUPERLN

Source: M+

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