M+ Morning Market Buzz - 3 Jan 25

Dow Jones: 42,392.27 pts (-151.95pts, -0.36%)
⬆️ Resistance:  44200
⬇️ Support:  41400

FBM KLCI: 1,632.87 pts (-9.46pts, -0.58%)
⬆️ Resistance:  1680
⬇️ Support:  1590

HSI Index: 19,623.32 pts (-436.63pts, -2.18%)
⬆️ Resistance:  20600
⬇️ Support:  19200

Crude Palm Oil: RM4,333 (+RM29, +0.67%)
⬆️ Resistance:  4740
⬇️ Support:  4230

Brent Oil: $74.64 (+$1.29, +1.63%)
⬆️ Resistance:  78.10
⬇️ Support:  71.60

Gold: $2,657.90 (+$0.87, -0.00%)
⬆️ Resistance:  2720
⬇️ Support:  2550

M+ Market update – 3 Jan 25
Buying Interest May Be Seen In O&G Stocks

The local front began the year on a softer note, snapping a 6-day winning streak as profit-taking emerged in selected Industrial Products & Services and Utilities heavyweights. Although unemployment claims came in stronger than expected, US stocks extended their losses, partly weighed down by lackluster results from Tesla Inc. Traders will also keep an eye on key economic data, such as the ISM Manufacturing PMI, set to be released later today. In the commodities market, Brent crude oil gained momentum, hovering above USD75, supported by shrinking US crude stockpiles and growing manufacturing activity in China. The gold price edged higher, surpassing USD2,600, while CPO prices retreated below the RM4,400 mark. 

Sector Focus: While the local bourse is set to open lower, mirroring the softer tone of the overnight US market, we favour the O&G sector amid the surge in Brent crude oil prices. We also maintain a positive outlook on export-oriented sectors like Glove and Technology as the dollar index continues to edge higher above the 109 level. The breakout in gold prices could present trading opportunities in gold-related counters. Moving forward, we expect data center investments to begin materialising in earnings within the Construction, Building Materials, and Utilities sectors.

Stocks to watch: 

Technology: *ADB*, SNS, *VITROX*, VS
Utility: *JTGROUP*, *UUE*
Consumer: *RGB*
Construction: KERJAYA
O&G: KEYFIELD

__Source: M+ _ARMADA
 

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