M+ Morning Market Buzz - 2 Jan 25

Dow Jones: 42,544.22 pts (-29.51pts, -0.07%)
⬆️ Resistance:  44300
⬇️ Support:  41500

FBM KLCI: 1,642.33 pts (+4.65pts, +0.28%)
⬆️ Resistance:  1680
⬇️ Support:  1580

HSI Index: 20,059.95 pts (+18.53pts, +0.09%)
⬆️ Resistance:  20600
⬇️ Support:  19600

Crude Palm Oil: RM4,448 (-RM103, -2.26%)
⬆️ Resistance:  4740
⬇️ Support:  4330

Brent Oil: $74.64 (+$0.65, +0.88%)
⬆️ Resistance:  76.40
⬇️ Support:  71.60

Gold: $2,624.50 (+$18.00, +0.69%)
⬆️ Resistance:  2700
⬇️ Support:  2550

M+ Market update – 2 Jan 25
Data Center Theme Remains Relevant

The local bourse traded positively, extending its six-day winning streak on the final trading day of 2024, driven by a surge in buying interest during the second session. However, the Nasdaq continued to weigh on Wall Street sentiment, as losses persisted following the Fed’s move to temper expectations of imminent rate cuts. Traders will also keep track of key economic data, including US unemployment claims and the ISM Manufacturing PMI. In the commodities market, buying interest was seen in Brent crude oil, hovering above USD74 after data showed China’s manufacturing activity expanded in December. Gold price traded sideways along USD2620. CPO prices retreated below RM4,500 mark.

Sector Focus: The local front is set to open lower, tracking the weaker tone of the overnight US market, which may cap the upside for the Technology sector for now. Meanwhile, we favour the O&G sector, given the rebound in Brent crude oil prices, and maintain a positive outlook on Glove stocks as the ringgit continues to hover around RM4.47/USD. Looking ahead, we anticipate a potential surge in Construction, Building Materials and Utilities earnings, driven by data center investments.

Stocks to watch: 

Technology: *ADB*, *NATGATE*, *SNS*
Property: *SPSETIA*, UEMS
Utility: JTGROUP, *UUE*
Building Material: UNIQUE
Telco: OCK

Source: M+

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