M+ Morning Market Buzz - 9 Dec 24

Dow Jones: 44,642.52 pts (-123.19pts, -0.28%)
⬆️ Resistance:  46000
⬇️ Support:  43700

FBM KLCI: 1,613.25 pts (-2.39pts, -0.15%)
⬆️ Resistance:  1660
⬇️ Support:  1570

HSI Index: 19,865.85 pts (+305.41pts, +1.56%)
⬆️ Resistance:  20400
⬇️ Support:  19000

Crude Palm Oil: RM5,128 (-RM7, -0.14%)
⬆️ Resistance:  5290
⬇️ Support:  4840

Brent Oil: $71.12 (-$0.97, -1.35%)
⬆️ Resistance:  75.80
⬇️ Support:  69.50

Gold: $2,633.37 (+$1.85, +0.07%)
⬆️ Resistance:  2720
⬇️ Support:  2570

M+ Market update – 9 Dec 24
Buying Interest May Shift Towards Tech Stocks

The FBMKLCI retreated after 3-day winning streak, as profit-taking activities were observed across certain banking and utilities counters. Meanwhile, Wall Street closed higher after November jobs data came in slightly better than expected, but not strong enough to deter the Federal Reserve from considering further rates cut. Traders will be monitoring several key events this week, including (i) US 3Q GDP, (ii) Japan 3Q GDP, and (iii) China’s November CPI and PPI. In the commodities market, Brent crude oil slipped further towards the USD71 level and will be closely watched after the toppling of the Syrian government. Gold traded sideways around the USD2,650 level while CPO prices advanced further, closing above the RM5,100 level.

Sector Focus: As the market approaches year-end, we believe window dressing activities may emerge across blue-chips, especially Banking and Plantation heavyweights. Meanwhile, we believe buying interest to pick up in the Utilities, Construction, and Building Materials sectors, driven by the recent recovery in YTL and YTLPOWR share prices, along with earnings realisation from the construction of data center facilities. Opportunities will shift towards data centre midstream industries in the Technology sector, such as IT solutions, cybersecurity, HDD, EMS and OSAT, following the commencement of data construction earlier this year.

Stocks to watch: 

Technology: ADB, *CLOUDPT*, *EDARAN*, FRONTKN, *INFOTEC*, PANDA
Building Material: *PLYTEC*, *UNIQUE*
Utilities: *RANHILL*
Healthcare: KAREX
Industrial Products: MINOX
Construction: SSB8

Source: M+

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