M+ Morning Market Buzz - 8 Jan 25

Dow Jones: 42,528.36 pts (-178.20pts, -0.42%)
⬆️ Resistance:  44000
⬇️ Support:  41400

FBM KLCI: 1,629.79 pts (+4.32pts, +0.27%)
⬆️ Resistance:  1680
⬇️ Support:  1600

HSI Index: 19,447.58 pts (-240.71pts, -1.22%)
⬆️ Resistance:  20400
⬇️ Support:  18900

Crude Palm Oil: RM4,365 (+RM5, +0.11%)
⬆️ Resistance:  4620
⬇️ Support:  4200

Brent Oil: $77.05 (+$0.75, +0.98%)
⬆️ Resistance:  79.10
⬇️ Support:  73.30

Gold: $2,648.59 (+$0.87, +0.03%)
⬆️ Resistance:  2720
⬇️ Support:  2570

M+ Market update – 8 Jan 25
ITMAX Securing Penang Contract

The local front rebounded after its 3-day losing streak, with strong buying interest seen across the Construction sector led by GAMUDA. In the US, all the 3 major indices closed lower, as ISM services data showed an acceleration, raising concerns about persistent inflation and reducing expectations for rate cuts in 2025 (from 2 rate cuts to 1). In terms of key economic data, traders will also keep track on the (i) Eurozone PPI, (ii) China CPI and (iii) US jobs report this week. In the commodities market, Brent crude oil continued its upward momentum and closed above the USD77, while the gold price traded flat around the USD2,650. Meanwhile, the CPO prices showed marginal gains but still trading below the RM4,400 mark. 

Sector Focus: With ITMAX securing an RM11.8m CCTV contract from the Penang City Council, we believe trading opportunities will persist in ITMAX; Penang is also ITMAX’s third local council customer, besides Johor and KL. Meanwhile, we are also bullish on e-invoicing-related counters, as taxpayers with an annual turnover or revenue of more than RM25m to RM100m will have to subscribe to e-invoice service starting 1st January 2025. Lastly, with the formalisation of the Johor-Singapore Special Economic Zone, we are optimistic towards the Johor-related counters.

Stocks to watch: 

Technology: *ATECH*, CABNET, *JFTECH*, RAMSSOL, *SMRT *
Utility: *JTGROUP*, *KJTS*
O&G: ARMADA
Construction: SSB8

Source: M+

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