M+ Morning Market Buzz - 3 Dec 24

Dow Jones: 44,782.00 pts (-128.65pts, -0.29%)
⬆️ Resistance:  46000
⬇️ Support:  43600

FBM KLCI: 1,595.48 pts (+1.19pts, +0.07%)
⬆️ Resistance:  1650
⬇️ Support:  1560

HSI Index: 19,550.29 pts (+126.68pts, +0.65%)
⬆️ Resistance:  20100
⬇️ Support:  18700

Crude Palm Oil: RM4,955 (+RM43, +0.87%)
⬆️ Resistance:  5170
⬇️ Support:  4570

Brent Oil: $71.84 (+$0.11, +0.15%)
⬆️ Resistance:  75.90
⬇️ Support:  70.10

Gold: $2,639.13 (+$0.01, +0.00%)
⬆️ Resistance:  2720
⬇️ Support:  2560

M+ Market update – 3 Dec 24
Export-Oriented and Palm Oil Regain Their Shine

The FBMKLCI began the week on a soft note as healthcare stocks were sold off. However, we believe upward momentum could emerge during the window-dressing period. Meanwhile, the US markets were traded mostly higher, with the S&P500 and Nasdaq briefly hitting record highs, buoyed by gains in the Magnificent-7, while traders pricing in another December rate cut. The ISM PMI data showed that activity improved, with orders growing for the first time in eight months. Moving forward, traders will monitor key economic indicators, including (i) labour market updates (JOLTS, ADP employment, unemployment rate, and non-farm payrolls), and (ii) weekly unemployment claims. In the commodities market, Brent crude oil and gold prices traded flat, around USD 71-72 per barrel and USD 2,638 per ounce, respectively while CPO prices retreated marginally below the RM 5,000 mark.

Sector Focus: Following the positive performance in the US markets, we anticipate that buying interest could spill over into the local bourse, especially in (i) export-oriented stocks, which could benefit from the strengthening of USD, (ii) plantation stocks supported by earnings and momentum in CPO prices, and (iii) entertainment and aviation segments as the holiday season kicks off, such as Genting and AirAsia. Meanwhile, we like consumer stocks given their defensive characteristic and solid earnings seen in the recent quarterly results.

Stocks to watch: 

Construction: *IBRACO*, PESONA, UNIQUE 
Shipping: ICON, *SYGROUP*
Plantation: INNO, *MHC*
Utilities: KJTS, *UUE*
Technology: *CLOUDPT*
Property: SIMEPROP
Consumer: 99SMART

Source: M+

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