M+ Morning Market Buzz - 2 Dec 24

Dow Jones: 44,910.65 pts (+188.59pts, +0.42%)
⬆️ Resistance:  46000
⬇️ Support:  43500

FBM KLCI: 1,594.29 pts (-3.20pts, -0.20%)
⬆️ Resistance:  1650
⬇️ Support:  1560

HSI Index: 19,423.61 pts (+56.65pts, +0.29%)
⬆️ Resistance:  20100
⬇️ Support:  18700

Crude Palm Oil: RM5,020 (+RM135, +2.76%)
⬆️ Resistance:  5140
⬇️ Support:  4570

Brent Oil: $71.84 (-$0.94, -1.29%)
⬆️ Resistance:  76.90
⬇️ Support:  70.70

Gold: $2,643.15 (+$5.23, +0.20%)
⬆️ Resistance:  2780
⬇️ Support:  2560

M+ Market update – 2 Dec 24
Window Dressing Activities Set to Begin

While the FBMKLCI retreated below the 1,600 level, we believe a rebound could emerge as we enter the window dressing period. Meanwhile, the US markets bounced back and closed higher, driven by gains in technology and retail stocks as the holiday season kicked off. Looking ahead, traders will monitor key economic indicators, including (i) ISM PMI data, (ii) labour market updates (JOLTS, ADP employment, unemployment rate, and non-farm payrolls), and (iii) weekly unemployment claims. In the commodities market, Brent crude oil traded flat around USD72 per barrel, while gold prices rebounded above USD2,600 as the dollar weakened on expectations of December rate cuts and heightened geopolitical tensions. CPO prices surged above the RM5,000 level. Meanwhile, Bitcoin remained elevated, breaking above the USD97k mark and approaching the USD100k level.

Sector Focus: While the earnings of export-oriented stocks were impacted by forex losses due to the ringgit's strength in 3Q24, we maintain a positive outlook on sectors such as Technology and Glove, which could benefit from the ringgit's depreciation of at least 7.5% since the end of September. Also, we expect sustained buying interest in Plantation stocks, supported by (i) the continued upward momentum in CPO prices, and (ii) strong earnings reported by plantation companies.

Stocks to watch: 

Technology: *EG*, VSTECS
Shipping: ICON, *SEALINK*
Property: E&O, *ECOWLD*
Plantation: *INNO*, MHC 
Utilities: *BMGREEN*
Consumer: FFB
Construction: LFECORP

Source: M+

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