M+ Morning Market Buzz - 4 Dec 24

Dow Jones: 44,705.53 pts (-76.47pts, -0.17%)
⬆️ Resistance:  46000
⬇️ Support:  43700

FBM KLCI: 1,606.96 pts (+11.48pts, +0.72%)
⬆️ Resistance:  1650
⬇️ Support:  1560

HSI Index: 19,746.32 pts (+196.03pts, +1.00%)
⬆️ Resistance:  20200
⬇️ Support:  18700

Crude Palm Oil: RM5,075 (+RM75, +1.48%)
⬆️ Resistance:  5190
⬇️ Support:  4610

Brent Oil: $71.83 (+$1.88, +2.62%)
⬆️ Resistance:  75.50
⬇️ Support:  70.10

Gold: $2,643.49 ($0.00, 0.00%)
⬆️ Resistance:  2720
⬇️ Support:  2570

M+ Market update – 4 Dec 24
Focusing On Tech and Gloves Amid USD Strength

The FBMKLCI extended its gains, closing above the key 1,600 psychological level. As the earnings season concludes, we anticipate the upward momentum to sustain with the start of the window-dressing period. Meanwhile, US markets traded mixed, with the S&P 500 and the Nasdaq briefly hitting record highs; JOLTS job opening exceeded expectations, indicating a stronger labour market. Going forward, traders will monitor key indicators like the unemployment rate, NFP, weekly unemployment claims, and commentary from the Fed. In the commodities market, Brent oil rose above USD73 driven by Iran crude sanctions and ahead of OPEC+ meeting. Gold traded flat following strong US jobs data, which hinted at a cautious approach to rate cuts by the Fed. CPO prices gained momentum and closed above the 5,100 level.

Sector Focus: with higher CPO prices and strong earnings from plantation stocks, we foresee trading opportunities in the Plantation sector. We anticipate the USD could strengthen further following the robust jobs data, which may benefit export-oriented stocks, such as Technology and Gloves. Also, we like selected industrial products, shipping and building material stocks, the latter of which may benefit as data center investment may materialise into earnings.

Stocks to watch: 

Technology: *CLOUDPT*, INFOTEC, *SFPTECH*, *SNS*
Building Material: MNHLDG, *PLYTEC*, UNIQUE
Industrial products: *MINOX*
Utility: *RANHILL*
Gloves: HARTA
Shipping: AGX

Source: M+

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