M+ Morning Market Buzz - 28 Oct 24

Dow Jones: 42,114.40 pts (-259.96pts, -0.61%)
⬆️ Resistance:  44200
⬇️ Support:  41300

FBM KLCI: 1,618.30 pts (-13.93pts, -0.85%)
⬆️ Resistance:  1690
⬇️ Support:  1590

HSI Index: 20,590.15 pts (+100.53pts, +0.49%)
⬆️ Resistance:  21400
⬇️ Support:  20000

Crude Palm Oil: RM4,536 (-RM67, -1.46%)
⬆️ Resistance:  4760
⬇️ Support:  4150

Brent Oil: $76.05 (-$3.10, -4.08%)
⬆️ Resistance:  78.10
⬇️ Support:  71.40

Gold: $2,747.56 (-$10.91, -0.40%)
⬆️ Resistance:  2820
⬇️ Support:  2660

M+ Market update – 28 Oct 24
Export-Oriented Stocks: Ripe for Breakouts

Market sentiment weakened last week on the local exchange, with increased selling in YTL-related stocks, while the FBM Small Cap index continued to decline. In the US, sentiment was mixed as traders evaluated a range of corporate earnings and economic data. US durable goods orders fell in September, yet consumer sentiment climbed to its highest level since April; the Dow and S&P 500 retreated from their record highs, while the Nasdaq saw a rebound. In the commodities market, Brent crude oil rebounded close to USD76, but it is likely to retrace as Middle East tensions eased. Gold prices rallied towards an all-time high zone, and CPO prices, continued to hold above the RM4,500 mark.

Sector Focus: With the ringgit weakened towards the RM4.337/USD range, we expect export-oriented sectors like Gloves and Technology to benefit, while traders may shift away from domestic-focused stocks. Also, commodity-related sectors such as Plantation, O&G, and gold-related stocks stand to gain from recent underlying commodity price movements; we believe BAHVEST may continue its rally in the near term, given the surge in gold prices. This week, selected Construction and Shipping stocks may also trend positively as momentum builds.

Stocks to watch: 

Construction: *BNASTRA*, *KERJAYA*, WCT
Technology: *NATGATE*, PIE
Telco: *REDTONE* 
Shipping: *HARBOUR*
Building material: SCGBHD
Gloves: HARTA
Consumer: FFB
Property: MAHSING

Source: M+

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