M+ Morning Market Buzz - 22 Oct 24

Dow Jones: 42,931.60 pts (-344.31pts, -0.80%)
⬆️ Resistance:  44200
⬇️ Support:  41900

FBM KLCI: 1,645.68 pts (-0.31pts, -0.02%)
⬆️ Resistance:  1690
⬇️ Support:  1600

HSI Index: 20,478.46 pts (-325.65pts, -1.57%)
⬆️ Resistance:  21600
⬇️ Support:  19600

Crude Palm Oil: RM4,299 (+RM3, +0.07%)
⬆️ Resistance:  4470
⬇️ Support:  4150

Brent Oil: $74.29 (+$1.23, +1.68%)
⬆️ Resistance:  77.10
⬇️ Support:  71.10

Gold: $2,719.85 (+$0.15, +0.01%)
⬆️ Resistance:  2800
⬇️ Support:  2590

M+ Market update – 22 Oct 24
Export-Driven Stocks May Shine Amid Weak RM

The Bursa exchange ended mildly lower on the first trading day after the Budget 2025 being tabled last Friday. Meanwhile, the Dow and S&P 500 retreated from their record-high closings as investors await more US earnings releases. Looking ahead, we expect the market to remain cautious as major companies like Tesla, Coca-Cola, T-Mobile US, and GE Aerospace will be releasing their results this week. Also, traders will closely monitor key economic data, including (i) US unemployment claims, (ii) flash manufacturing and services PMI, (iii) durable goods orders, and (iv) consumer sentiment. Besides, the BRICS summit will take place over the next three days. In the commodities market, Brent crude oil rebounded after a 7-day losing streak, driven by China's rate cut, which may boost demand. Meanwhile, gold prices surged towards all-time highs, and CPO is trading around RM4,300.

Sector Focus: Given the mixed trading environment in the US, we expect funds to remain on the sidelines in the near term. However, attention may shift to sectors set to benefit from Budget 2025 policies, including Construction, Property, Technology, and Renewable Energy. The recent weakness in the ringgit could provide opportunities to accumulate export-related stocks. Lastly, stocks tied to Johor, Sabah, and Sarawak could see potential gains, as these regions are key areas of growth under Budget 2025.

Stocks to watch: 

Technology: *ITMAX*, *RAMSSOL*
Consumer: *LHI*, QL
Property: *SCIENTX*, SUNWAY
Glove: *HARTA*
Finance: RCECAP
Construction: GAMUDA

Source: M+
 

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