M+ Morning Market Buzz - 16 Oct 24

Dow Jones: 42,740.42 pts (-324.80pts, -0.75%)
⬆️ Resistance:  44200
⬇️ Support:  41200

FBM KLCI: 1,641.97 pts (+5.43pts, +0.33%)
⬆️ Resistance:  1680
⬇️ Support:  1600

HSI Index: 20,318.79 pts (-774.08pts, -3.67%)
⬆️ Resistance:  22100
⬇️ Support:  19800

Crude Palm Oil: RM4,239 (+RM44, +1.04%)
⬆️ Resistance:  4500
⬇️ Support:  4110

Brent Oil: $74.25 (+$0.50, +0.67%)
⬆️ Resistance:  81.40
⬇️ Support:  71.90

Gold: $2,662.58 (-$2.40, -0.09%)
⬆️ Resistance:  2730
⬇️ Support:  2560

M+ Market update – 16 Oct 24
Profit Taking Activities To Spillover To Local Front

Local stocks traded mixed, despite both the FBM KLCI and FBM Small Cap rebounded ahead of the tabling of Malaysia’s Budget 2025. In the US, profit-taking emerged as markets digested the latest corporate earnings, where technology giants were affected after ASML tumbled 16% following a weaker-than-expected 2025 sales outlook. Looking ahead, traders are expected to closely monitor upcoming economic data, including US core retail sales, US jobs data, and China’s GDP. In the commodity markets, Brent crude oil continues to weaken due to demand concerns and easing tensions in the Middle East. Meanwhile, gold prices remained firm, trading above USD2,660, close to an all-time high. The crude palm oil (CPO) market rebounded, closing near RM4,300.

Sector Focus: With the weaker ringgit position, traders are likely to shift their focus toward export-oriented sectors such as Gloves and Technology. Investors may further add exposure to sectors that could benefit from Budget 2025, including Construction, Property, Building Materials, and Utilities. Besides, some Plantation and Finance stocks with attractive dividend yields may appeal to those seeking defensive plays.

Stocks to watch: 

Technology: *EG*, ITMAX, *RAMSSOL*
Property: *ECOWLD*, SUNWAY
Finance: BIMB, *OSK*
Plantation: *JTIASA*
Construction: KERJAYA
Building Material: UNIQUE

Source: M+

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