M+ Morning Market Buzz - 24 Oct 24

Dow Jones: 42,514.95 pts (-409.94pts, -0.96%)
⬆️ Resistance:  44200
⬇️ Support:  41500

FBM KLCI: 1,641.53 pts (-1.01pts, -0.06%)
⬆️ Resistance:  1690
⬇️ Support:  1610

HSI Index: 20,760.15 pts (+261.20pts, +1.27%)
⬆️ Resistance:  21400
⬇️ Support:  19600

Crude Palm Oil: RM4,486 (-RM11, -0.25%)
⬆️ Resistance:  4610
⬇️ Support:  4150

Brent Oil: $74.96 (-$1.08, -1.42%)
⬆️ Resistance:  77.90
⬇️ Support:  71.10

Gold: $2,715.55 (+$2.27, +0.08%)
⬆️ Resistance:  2820
⬇️ Support:  2620

M+ Market update – 24 Oct 24
Uncertainties Intensified Ahead Of US Elections

The FBM KLCI declined for the third consecutive day, while the FBM Small Cap index rebounded. In the US, market sentiment turned negative, with all major indices closing in the red as uncertainties surrounding the upcoming US elections intensified. Also, US home sales fell short of expectations, while Treasury yields rose to a three-month high, with the market now pricing in an 89% probability of a 25 bps rate cut at the upcoming FOMC meeting. In the commodities market, Brent crude oil dipped slightly after US crude inventories increased more than anticipated, despite a rebound in refining activity. Meanwhile, gold prices pulled back but remained above the USD2,700 mark. CPO prices edged closer to RM4,500, signalling a potential upward rally.
 
Sector Focus: We believe investors will continue to focus on the Construction, Property, and Renewable Energy sectors after the Budget 2025. Meanwhile, we are optimistic about the commodity sectors, as CPO has been trending positively in recent trading sessions, which may drive higher trading activity in the Plantation sector. Besides, as the ringgit weakened further to RM4.347/USD, we expect traders to seize the opportunity to accumulate stocks in the Glove and Technology sectors.

Stocks to watch: 

Construction: BNASTRA, KERJAYA, *SENDAI*, *SUNCON*
Building Material: *MNHLDG*, SCGBHD
Plantation: *INNO*, JTIASA
Technology: *NATGATE*
Finance: AMBANK

Source: M+

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