M+ Morning Market Buzz - 21 Oct 24

Dow Jones: 43,275.91 pts (+36.86pts, +0.09%)
⬆️ Resistance:  44200
⬇️ Support:  41900

FBM KLCI: 1,645.99 pts (+4.55pts, +0.28%)
⬆️ Resistance:  1690
⬇️ Support:  1600

HSI Index: 20,804.11 pts (+725.01pts, +3.61%)
⬆️ Resistance:  21800
⬇️ Support:  19600

Crude Palm Oil: RM4,255 (-RM23, -0.54%)
⬆️ Resistance:  4500
⬇️ Support:  4150

Brent Oil: $73.06 (-$1.39, -1.87%)
⬆️ Resistance:  80.20
⬇️ Support:  71.10

Gold: $2,721.46 (+$28.75, +1.07%)
⬆️ Resistance:  2780
⬇️ Support:  2590

M+ Market update – 21 Oct 24
Positive Budget May Boost Market Sentiment

Wall Street ended on a positive note following Netflix’s stronger-than-expected Q3 earnings. We believe that the strong performance in the technology sector, combined with positive sentiment from Budget 2025, may provide buying support in the local market. This week, traders will be closely watching the following key events: (i) US unemployment claims, (ii) Flash manufacturing and services PMI, (iii) durable goods orders, and (iv) consumer sentiment reports. In the commodities market, Brent crude oil continues to trend lower due to weaker demand forecasts from OPEC and the IEA, as well as easing geopolitical tensions in the Middle East. Meanwhile, gold prices surged toward record highs. CPO prices remained within the RM4,250-4,300 range, continuing their upward trend.

Sector Focus: Following Budget 2025, we expect buying support to extend in the Construction and Property sectors, particularly the latter due to property tax relief initiatives. We also favour the Utilities sector, as more green-related initiatives were highlighted in Budget 2025, leading to potential trades in the renewable energy and sub-utilities segments. Additionally, with increased emphasis and investment in the semiconductor and E&E sectors, we expect buying interest in the technology sector. Finally, we see potential in stocks linked to Johor, Sabah, and Sarawak.

Stocks to watch: 

Technology: *HTPADU*, NATGATE
Building Material: *CMSB*, SCGBHD
Construction: *PESONA*
Consumer: *LHI*
Property: *ECOWLD*
Plantation: JTIASA
O&G: GASMSIA

Source: M+

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.