M+ Morning Market Buzz - 4 Nov 24

Dow Jones: 42,052.19 pts (+288.73pts, +0.69%)
⬆️ Resistance:  43400
⬇️ Support:  40900

FBM KLCI: 1,603.98 pts (+2.10pts, +0.13%)
⬆️ Resistance:  1670
⬇️ Support:  1560

HSI Index: 20,506.43 pts (+189.10pts, +0.93%)
⬆️ Resistance:  21400
⬇️ Support:  19900

Crude Palm Oil: RM4,868 (+RM172, +3.66%)
⬆️ Resistance:  4980
⬇️ Support:  4400

Brent Oil: $73.10 (+$0.29, +0.40%)
⬆️ Resistance:  76.50
⬇️ Support:  69.40

Gold: $2,736.53 (-$7.44, -0.27%)
⬆️ Resistance:  2850
⬇️ Support:  2680

M+ Market update – 4 Nov 24
 Highly Volatile Market Environment Expected

Last week, sentiment on the local bourse improved, with both the FBMKLCI and FBMSCAP edging higher. While the US NFP data came in weaker than anticipated, potentially influencing the Fed’s decision in the upcoming FOMC meeting, sentiment turned positive in the US as investors digested earnings reports from Apple and Amazon. However, this week we anticipate a volatile market environment ahead of the US Presidential Election and the FOMC meeting. In the commodities market, Brent crude oil surged amid ongoing geopolitical tensions in the Middle East, while gold prices retreated on profit-taking, ending near the USD 2,740 level. Meanwhile, CPO prices continued to rally, reaching a two-year high above the RM 4,700 level.

Sector Focus: Despite the ongoing market volatility, we believe the weaker ringgit at RM4.375/USD could lift sentiment in export-oriented sectors such as Gloves and Technology. Additionally, the Plantation sector is likely to trend positively in line with the CPO price rally, while the O&G sector could benefit from the rebound in oil prices amid unresolved tensions in the Middle East. For defensive plays, we favour the Consumer sector, with companies like MRDIY and 99SMART being attractive options.

Stocks to watch: 

Plantation: JTIASA, SDG, *SOP*
O&G: *DELEUM*
Gloves: *HARTA*
Consumer: *MRDIY*
Technology: *NATGATE*
Construction: GAMUDA
Property: IOIPG

Source: M+

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