M+ Morning Market Buzz - 20 Dec 24

Dow Jones: 42,342.24 pts (+15.37pts, +0.04%)
⬆️ Resistance:  45000
⬇️ Support:  41500

FBM KLCI: 1,600.09 pts (+0.51pts, +0.03%)
⬆️ Resistance:  1650
⬇️ Support:  1560

HSI Index: 19,752.51 pts (-112.04pts, -0.56%)
⬆️ Resistance:  20700
⬇️ Support:  19200

Crude Palm Oil: RM4,508 (-RM68, -1.51%)
⬆️ Resistance:  5040
⬇️ Support:  4280

Brent Oil: $73.39 (-$0.51, -0.99%)
⬆️ Resistance:  76.10
⬇️ Support:  71.10

Gold: $2,594.01 (+$0.39, -0.00%)
⬆️ Resistance:  2750
⬇️ Support:  2540

M+ Market update – 20 Dec 24
USD Strength Will Be The Key Focus

The local bourse eked out marginal gains, closing at the key 1,600 psychological level. In the US, following growing concerns on inflationary pressures, driven by the expected higher tariffs imposed under the Trump administration—which could result in a slower easing cycle by the Fed next year. We believe the overall tone on the stock markets will remain volatile until Trump’s inauguration in Jan-25. Meanwhile, Core PCE Price Index data is set to be released later today. In the commodities market, Brent crude oil continued to retreat, hovering around USD72 per barrel, as the stronger dollar limited the upside potential. Gold prices remained flat below the USD2,600 mark, while CPO prices declined for another session, trading below the RM4,500 level

Sector Focus: Despite expectations of a mixed trading session on the local bourse influenced by sentiment on Wall Street, we expect buying interest to focus on the export-oriented sectors like Technology and Glove stocks, supported by the Fed's hawkish pivot. Also, we remain positive on stocks linked to the data center supply chain and the Construction, Utility, Building Material sectors, as supported by the data center investments earlier this year.

Stocks to watch: 

Technology: *FRONTKN*, *KGB*, *NATGATE*, *VS*
Utilities: *KENERGY*, *RANHILL*, YTL, YTLPOWR
Shipping: AGX
Gloves: KOSSAN

Source: M+

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