M+ Morning Market Buzz - 19 Dec 24

Dow Jones: 42,326.87 pts (-1123.03pts, -2.58%)
⬆️ Resistance:  45100
⬇️ Support:  41500

FBM KLCI: 1,599.58 pts (+2.25pts, +0.14%)
⬆️ Resistance:  1650
⬇️ Support:  1570

HSI Index: 19,864.55 pts (+164.07pts, +0.83%)
⬆️ Resistance:  21000
⬇️ Support:  19300

Crude Palm Oil: RM4,529 (-RM35, -0.77%)
⬆️ Resistance:  5040
⬇️ Support:  4420

Brent Oil: $73.19 (-$0.26, -0.36%)
⬆️ Resistance:  76.10
⬇️ Support:  71.00

Gold: $2,585.35 (-$62.51, -2.36%)
⬆️ Resistance:  2790
⬇️ Support:  2540

M+ Market update – 19 Dec 24
 Fed's Hawkish Tone Triggers Sell-Off

The local bourse rebounded, supported by gains in the Consumer Products & Services sector. US markets traded lower despite the widely anticipated 25 bps rate cut, as the Fed expressed concerns that higher tariffs imposed by the Trump administration may cause elevated inflationary pressure in the US, signalling a slower easing cycle going forward. Meanwhile, traders will closely monitor several key data releases, including (i) U.S. GDP, (ii) Unemployment Claims, (iii) Core PCE Price Index, and (iv) the BoJ monetary policy conference. In the commodities market, Brent crude oil traded within the USD72-73 range despite a fourth consecutive week of declining oil inventories. Gold prices retreated below the USD2,600 mark, while CPO prices continued their decline for another session, trading below the RM4,500 level.

Sector Focus: Although negative sentiment is expected to spill over into the local stock market, we believe export-oriented stocks within the Gloves and Technology sectors may benefit from a stronger dollar index following the Fed’s interest rate outlook, which suggests a slower easing cycle. Also, we remain positive on stocks related to the data center supply chain and anticipate that the Sub-Utility and Building Material segments will trade on a positive trend, at least in the near term.

Stocks to watch: 

Technology: *ADB*, CLOUDPT, *JCY*, *KGB*, MCLEAN
Building Material: MNHLDG, *UUE*
Gloves: HARTA, *KOSSAN*
Consumer: *RGB*

Source: M+
 

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.