M+ Morning Market Buzz - 28 Jan 25

Dow Jones: 44,713.58 pts (+289.33pts, +0.65%)
⬆️ Resistance:  45700
⬇️ Support:  42700

FBM KLCI: 1,558.97 pts (-14.76pts, -0.94%)
⬆️ Resistance:  1630
⬇️ Support:  1530

HSI Index: 20,197.77 pts (+131.58pts, +0.66%)
⬆️ Resistance:  20800
⬇️ Support:  19300

Crude Palm Oil: RM4,218 (-RM6, -0.14%)
⬆️ Resistance:  4370
⬇️ Support:  4050

Brent Oil: $78.50 (-$1.38, -1.76%)
⬆️ Resistance:  82.10
⬇️ Support:  74.80

Gold: $2,740.81 (-$0.28, -0.01%)
⬆️ Resistance:  2850
⬇️ Support:  2650

M+ Market Update – 28 Jan 25
The Reverse Of AI Theme –
 
The FBMKLCI began the week in negative territory due to the ongoing sell-offs in YTL-related counters, following the Group's plan to issue an inflexible 1-for-5 bonus warrant. Meanwhile, Wall Street closed lower after a low-cost AI model from the Chinese startup DeepSeek climbed to the top of Apple’s App Store, sparking concerns over the premium valuations of technology stocks. Traders will closely watch (i) US economic growth, (ii) unemployment claims, and (iii) the core PCE index. In the commodities market, Brent Crude oil remained below USD80, while gold prices snapped a 5-day winning streak, closing below USD2,740 an ounce. CPO prices traded flat at around RM4,200.

Sector Focus: Mirroring the softer tone of the US market performance, the KLCI is set to open lower. Although gold prices have pulled back, we believe traders may focus on the still-elevated gold price and trade the proxies in the near term amid uncertain environment following the Wall Street sell-off triggered by the rise of DeepSeek. Nevertheless, we believe domestic-themed plays may take the lead, driven by (i) RM9billion tenders for the Penang LRT project, (ii) JSSEZ initiatives, and (iii) the potential emergence of Sarawak as an energy hub.

Stocks to watch: 

Utility: *KJTS*, PEKAT
Gold: *AUMAS*
Construction: PRTASCO
Furniture: *SSF*
Healthcare: *KPJ*

Source: M+

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