M+ Morning Market Buzz - 18 Oct 24

Dow Jones: 43,239.05 pts (+161.35pts, +0.37%)
⬆️ Resistance:  44200
⬇️ Support:  41700

FBM KLCI: 1,641.44 pts (+8.81pts, +0.54%)
⬆️ Resistance:  1680
⬇️ Support:  1600

HSI Index: 20,079.10 pts (-207.75pts, -1.02%)
⬆️ Resistance:  21800
⬇️ Support:  19600

Crude Palm Oil: RM4,278 (+RM14, +0.33%)
⬆️ Resistance:  4500
⬇️ Support:  4150

Brent Oil: $74.45 (+$0.23, +0.31%)
⬆️ Resistance:  81.10
⬇️ Support:  71.80

Gold: $2,692.71 (-$0.12, -0.00%)
⬆️ Resistance:  2760
⬇️ Support:  2580

M+ Market update – 18 Oct 24
Key Focus: Budget 2025

The Bursa exchange ended on a positive note, with the FBM KLCI trading higher above 1,640, while the FBM Small Cap Index rebounded ahead of the Budget 2025. In the US, Wall Street recorded another positive session after TSMC reported better-than-expected earnings and an optimistic outlook, driven by AI-led growth, which contributed to a rally in most technology heavyweights. The Dow also closed at fresh highs. Additionally, US retail sales exceeded expectations, and unemployment claims were in line with consensus estimates. In the commodities markets, Brent crude oil rebounded from its intraday low and ended flat after US inventories saw an unexpected drop last week, while gold prices surged closer to USD2,700 . CPO prices remained sideways in the uptrend phase, ranging between RM4,250-4,300, as the market could be awaiting a breakout.

Sector Focus: Given the tech rally in the US, along with a stronger USD, bargain-hunting may emerge locally within the Technology sector. We also expect cautious trading ahead of the tabling of Budget 2025, with sectors like Construction, Property, Building Materials, and Utilities expected to benefit from the budget. Additionally, selected Plantation and O&G stocks with attractive dividend yields could appeal to long-term investors. 

Stocks to watch: 

Technology: *CLOUDPT*, *ITMAX*, NATGATE
Consumer: FFB, *LHI*
Building Material: SCGBHD
Property: *SUNWAY*
Finance: *OSK*
Plantation: JTIASA
O&G: GASMSIA
Pharmaceutical: DPHARMA

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.