M+ Morning Market Buzz - 25 Oct 24

Dow Jones: 42,374.36 pts (-140.59pts, -0.33%)
⬆️ Resistance:  44200
⬇️ Support:  41400

FBM KLCI: 1,632.23 pts (-9.30pts, -0.57%)
⬆️ Resistance:  1690
⬇️ Support:  1600

HSI Index: 20,489.62 pts (-270.53pts, -1.30%)
⬆️ Resistance:  21400
⬇️ Support:  19700

Crude Palm Oil: RM4,603 (-RM14, -0.30%)
⬆️ Resistance:  4710
⬇️ Support:  4150

Brent Oil: $74.38 (-$0.58, -0.77%)
⬆️ Resistance:  78.10
⬇️ Support:  71.10

Gold: $2,736.17 (-$0.90, -0.03%)
⬆️ Resistance:  2820
⬇️ Support:  2640

M+ Market update – 25 Oct 24
Revisiting Export Stocks Amid Weaker Ringgit

Sentiment on the local front remained negative, mirroring the performance of regional markets, though selected Telco & Media and Healthcare stocks closed significantly higher. In the US, despite good set of economic data like (i) unemployment claims came in below expectations, (ii) both Flash manufacturing and services PMI exceeded forecasts, and (iii) new home sales rose to 738k in September (vs. 709k in August), trading tone was mixed; the Dow retraced another session, but the S&P 500 and Nasdaq rallied, supported by Tesla's post-earnings surge. In the commodities market, Brent crude oil continued to decline despite rising geopolitical tensions in the Middle East. Meanwhile, gold prices rebounded as the USD weakened after lower-than-expected unemployment claims. CPO prices traded above RM4,600, reaching a two-year high before closing at RM4,589.

Sector Focus: Given the weaker ringgit at RM4.345/USD, we believe traders will shift towards export-oriented stocks like Gloves and Technology; certain glove stocks are poised for a breakout. Also, following news of Gamuda securing contracts in Taiwan few days back and reassessing opportunities within Budget 2025, we see potential upside in the Construction, Property, and Renewable Energy sectors. We also favour the Plantation sector as CPO prices have closed above two-year highs.

Stocks to watch: 

Technology: *INFOTEC*, ITMAX, *NATGATE*
Consumer: *MRDIY*
Building Material: *SCGBHD*
Glove: *HARTA*
Property: SCIENTX
Construction: KERJAYA
Plantation: INNO
Finance: RCECAP

Source: M+

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