M+ Morning Market Buzz - 16 Jan 25 
 
Dow Jones: 43,221.55 pts (+703.27pts, +1.65%) 
⬆️ Resistance:  44200 
⬇️ Support:  41100 
 
FBM KLCI: 1,562.12 pts (-14.34pts, -0.91%) 
⬆️ Resistance:  1660 
⬇️ Support:  1530 
 
HSI Index: 19,286.07 pts (+66.29pts, +0.34%) 
⬆️ Resistance:  19800 
⬇️ Support:  18300 
 
Crude Palm Oil: RM4,268 (-RM4, -0.09%) 
⬆️ Resistance:  4640 
⬇️ Support:  4150 
 
Brent Oil: $79.92 (+$2.54, +3.18%) 
⬆️ Resistance:  84.30 
⬇️ Support:  74.20 
 
Gold: $2,696.32 (-$2.11, -0.08%) 
⬆️ Resistance:  2760 
⬇️ Support:  2610 

M+ Market Update – 16 Jan 25
 Bargain Hunting Activities To Emerge

The local bourse failed to hold onto its morning gains, dragged down by Construction heavyweights. While the CPI data met expectations, core CPI came in cooler-than-expected, suggesting easing inflationary pressure. This development boosted sentiment on Wall Street, as the market now will be pricing in more rate cuts moving forward. Besides, traders will closely monitor key economic data later this week, including (i) Retail Sales, (ii) Core Retail Sales, and (iii) Unemployment Claims. In the commodities market, Brent crude surged above USD82/barrel, while Gold closed above the USD2,690 level. CPO prices retreated to RM4,264.

Sector Focus: Overall, we believe buying opportunities could emerge in the Energy sector, driven by stronger crude oil prices after the US sanctions on Russian oil and Yinson receiving USD1bn for further CapEx. Given the rebound in the US driven by cooler inflationary pressure, coupled with an elevated dollar environment, we believe the bargain hunting activities may emerge on the local front, within the Technology sector, benefiting also the EMS segment despite the recent announcement from President Biden curbing export of AI Chips. We also like the Construction and Property sectors, supported by developments such as (i) the Penang LRT project and (ii) initiatives under JSSEZ.

Stocks to watch: 

Technology: *ITMAX*
Utility: *KJTS*
Property: *VLB*
Construction: *SENDAI*
Healthcare: KAREX

Source: M+

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