M+ Morning Market Buzz - 8 Oct 24

Dow Jones: 41,954.24 pts (-398.51pts, -0.94%)
⬆️ Resistance:  43300
⬇️ Support:  41000

FBM KLCI: 1,635.29 pts (+5.32pts, +0.33%)
⬆️ Resistance:  1700
⬇️ Support:  1600

HSI Index: 23,099.78 pts (+362.91pts, +1.60%)
⬆️ Resistance:  23800
⬇️ Support:  20900

Crude Palm Oil: RM4,343 (+RM49, +1.13%)
⬆️ Resistance:  4440
⬇️ Support:  3920

Brent Oil: $80.93 (+$2.88, +3.69%)
⬆️ Resistance:  82.80
⬇️ Support:  68.60

Gold: $2,642.59 (+$1.10, +0.04%)
⬆️ Resistance:  2730
⬇️ Support:  2580

M+ Market update – 8 Oct 24
**Getting Nearer To Budget 2025 And US Election*

In line with the upward rally in regional markets, the FBM KLCI rebounded to close above the 1,630 level, while the FBM Small Cap stabilised after recent sell-offs. In the US, Wall Street began the week on a retracement, pressured by rising oil prices due to ongoing developments in the Middle East. Also, rising bond yields weighed on markets as expectations of a Fed rate cut faded after the non-farm payroll data came in above expectations. In the commodities market, Brent crude rallied above USD 81 amid ongoing tensions in the Middle East, which could threaten Persian Gulf oil supplies, while gold hovered just below USD 2,650. Crude palm oil traded nearer to RM4,400 ahead of the Diwali festive season.

Sector Focus: With stronger crude oil and CPO prices, we believe traders may focus on O&G and Plantation stocks in the near term. Besides, we expect mild accumulation in Technology stocks due to slightly weaker ringgit conditions, as the USD/MYR rebounded from RM4.11 to RM4.27 yesterday, but upside may be capped with weaker Wall Street performance. Traders are also likely to position themselves in sectors that may benefit from Budget 2025, such as Construction, Property, Building Materials, and Utilities.

Stocks to watch: 

Construction: BNASTRA, *SSB8*
Building Material: *SUPERLN*, *UNIQUE*
Technology: *CLOUDPT*, *RAMSSOL*
Plantation: *JTIASA*
Property: SIMEPROP
Consumer: LHI
Utility: PBA

Source: M+

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