M+ Morning Market Buzz - 29 Nov 24

Dow Jones: 44,722.06 pts (-138.25pts, -0.31%)
⬆️ Resistance:  46000
⬇️ Support:  43000

FBM KLCI: 1,597.49 pts (-6.76pts, -0.42%)
⬆️ Resistance:  1650
⬇️ Support:  1560

HSI Index: 19,366.96 pts (-236.17pts, -1.20%)
⬆️ Resistance:  20200
⬇️ Support:  18700

Crude Palm Oil: RM4,885 (+RM18, +0.37%)
⬆️ Resistance:  4990
⬇️ Support:  4550

Brent Oil: $73.28 (+$0.45, +0.62%)
⬆️ Resistance:  77.00
⬇️ Support:  70.70

Gold: $2,637.92 (+$1.37, +0.05%)
⬆️ Resistance:  2780
⬇️ Support:  2560

M+ Market update – 29 Nov 24
Strengthening USD Will Be Key Focus

The FBMKLCI reversed into negative territory, retreating below the psychological 1,600 mark. Meanwhile, US markets were closed for the Thanksgiving holiday. Recent PCE data indicates an uptick, while Trump’s administration imposing trade tariffs could be exerting pressure on the inflation pressure going forward, these factors could reinforce the case for a gradual interest rate cut cycle by the Federal Reserve moving forward, translating to limited upside move on the stock markets. This week, traders will continue monitoring key economic events like (i) Eurozone CPI, (ii) Chicago PMI, and (iii) China’s Manufacturing PMI. In the commodities market, both the Brent crude oil and gold prices, as they steadied around the USD72 and USD2,600 levels. Meanwhile, CPO prices rebounded above the RM4,900 level as buying interest picked up ahead of the monthly data releases in early December.

Sector Focus: Given the rebound in CPO prices, coupled with the recent strong earnings by certain plantation counters, we foresee trading opportunities ahead of the Plantation sector. We believe the recent earnings have been dented by forex losses due to strengthening of ringgit in 3Q24, however, there would be a reversal trade going forward if the ringgit continues to weaken in 4Q24. Notably, the USDMYR trend has depreciated by approximately 7.5% from end-Sep, thus traders may look into Technology and Gloves.

Stocks to watch: 

Technology: *EG*, *ITMAX*, JCY
Construction: BNASTRA, *SENDAI*
Industrial Products: *MINOX*
Utilities: *RANHILL*
Plantation: MKHOP
Aviation: AAX
Building Material: TOPMIX
Shipping: ICON

Source: M+

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