M+ Morning Market Buzz - 12 Dec 24

Dow Jones: 44,148.56 pts (-99.27pts, -0.22%)
⬆️ Resistance:  46000
⬇️ Support:  43300

FBM KLCI: 1,603.20 pts (-5.77pts, -0.36%)
⬆️ Resistance:  1660
⬇️ Support:  1570

HSI Index: 20,155.05 pts (-156.23pts, -0.77%)
⬆️ Resistance:  21500
⬇️ Support:  19100

Crude Palm Oil: RM4,856 (+RM37, +0.76%)
⬆️ Resistance:  5290
⬇️ Support:  4730

Brent Oil: $72.19 (+$1.45, +2.01%)
⬆️ Resistance:  75.30
⬇️ Support:  69.50

Gold: $2,718.23 (-$0.11, -0.00%)
⬆️ Resistance:  2780
⬇️ Support:  2570

M+ Market update – 12 Dec 24
Shifting Attention Back To Technology

The FBMKLCI trended lower for the fourth consecutive day, with healthcare sector declining the most. In contrast, both the S&P500 and Nasdaq ended higher as the November CPI data came in within expectations, and traders now anticipating further rate cut in the FOMC meeting next week. Other key economic events to be monitored this week include (i) US unemployment claims, (ii) ECB rate decision and (iii) Eurozone industrial production data. In the commodities market, Brent crude oil rose above the USD73 level, as Biden administration considers imposing new sanctions on Russia’s oil industry. Gold prices have surged above the USD2,700 level, influenced by the recent inflation data release. Meanwhile, the CPO prices remain below RM5,000 as the momentum has paused after the sharp recent pullback.

Sector Focus: Given the rise in oil prices due to the possibility of new tension by US towards Russia’s oil trade, there might be a rebound in the O&G related counters. Meanwhile, traders can focus on the data centre midstream industries under the Technology sector, such as IT solutions, cybersecurity, HDD, EMS and OSAT, spurred by the ongoing construction of data center facilities. Besides, we like selected Utility, Industrial Products and Consumer stocks within the uptrend phase.

Stocks to watch: 

Technology: ADB, IFCAMSC, *NATGATE*, *PANDA*
Construction: BNASTRA, GAMUDA
Utility: *SMRT*
Industrial Products: *MINOX*
Consumer: *HUPSENG*

Source: M+

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