M+ Morning Market Buzz - 14 Nov 24

Dow Jones: 43,958.19 pts (+47.21pts, +0.11%)
⬆️ Resistance:  45400
⬇️ Support:  42800

FBM KLCI: 1,611.50 pts (+3.07pts, +0.19%)
⬆️ Resistance:  1680
⬇️ Support:  1580

HSI Index: 19,823.45 pts (-23.43pts, -0.12%)
⬆️ Resistance:  21800
⬇️ Support:  19300

Crude Palm Oil: RM4,987 (-RM151, -3.03%)
⬆️ Resistance:  5310
⬇️ Support:  4750

Brent Oil: $71.89 (+$0.14, +0.19%)
⬆️ Resistance:  77.70
⬇️ Support:  69.40

Gold: $2,572.98 (-$26.82, -1.03%)
⬆️ Resistance:  2770
⬇️ Support:  2530

M+ Market update – 14 Nov 24
Exporters May Benefit From Strong Dollar

The FBMKLCI rebounded, buoyed by renewed interest in Utilities and Industrial stocks, the latter surged due as SOLARVEST received approval to operate as a merchant generator in Kedah, which spurred buying support in the sector. Meanwhile, US inflation data came in within expectations, with CPI and Core CPI rising to 2.6%-3.3% YoY, respectively. As a result, Wall Street closed on a mixed note; the Dow advanced, while both the S&P 500 and Nasdaq ended flat. This week, traders will be closely watching (i) PPI, (ii) Retail Sales, and (iii) Q3 2024 Malaysia GDP data. In the commodities market, Brent crude oil traded flat following OPEC+'s reduced demand forecast. Gold prices retreated further to USD 2,573 as the dollar gained momentum, while the CPO price fell significantly below RM 4,800 as a slowdown in exports weighed on vegetable oil prices.

Sector Focus: We remain positive view on Technology and Gloves given the strong dollar environment. We also favour stocks within the Industrial Engineering industry and AI-driven sectors, as KGB experienced a breakout yesterday due to its strong earnings and its positive prospects. Also, selected Construction, Property, and Building Materials stocks are expected to post stronger earnings, supported by ongoing data center investments.

Stocks to watch: 

Technology: *CLOUDPT*, KGB, VS
Construction: *SMRT*, SSB8 
Building Material: *SCGBHD*, *UNIQUE*
Finance: *BIMB*
Utilities: TENAGA
Property: SUNWAY

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