M+ Morning Market Buzz - 13 Jan 25

Dow Jones: 41,938.45 pts (-696.75pts, -1.63%)
⬆️ Resistance:  44000
⬇️ Support:  41100

FBM KLCI: 1,602.41 pts (+1.60pts, +0.10%)a
⬆️ Resistance:  1670
⬇️ Support:  1570

HSI Index: 19,064.29 pts (-176.60pts, -0.92%)
⬆️ Resistance:  20300
⬇️ Support:  18700

Crude Palm Oil: RM4,391 (+RM95, +2.21%)
⬆️ Resistance:  4540
⬇️ Support:  4150

Brent Oil: $79.76 (+$2.84, +3.69%)
⬆️ Resistance:  82.40
⬇️ Support:  74.20

Gold: $2,689.76 (+$22.51, +0.84%)
⬆️ Resistance:  2760
⬇️ Support:  2570

M+ Market Update – 13 Jan 25
Tech Stocks May Experience Higher Volatility

The local bourse ended the week on a marginally positive note, lifted by gains in the Banking and Utilities sectors. In the US, December job data showed a recovery following the devastating hurricane season in November, exceeding analysts' forecasts. However, Wall Street closed on a negative note as markets anticipated that the Fed could further slow the easing cycle. In the commodities market, Brent crude oil approached the USD80 level amid declining US crude inventories. Gold prices traded above USD2,680 an ounce, while CPO prices rebounded, but remained below the RM 4,400 level.

Sector Focus Mirroring the softer tone of the US market performance, KLCI is set to open lower. Traders may focus on the O&G sector amid the surge in Brent crude oil prices and export-oriented stocks, that could benefit from the strengthening of the Dollar, which is currently hovering around the two-year high. However, the upside of the Technology stock may be limited following the announcement of further US restrictions on AI chip exports to Malaysia. Nevertheless, we believe domestic-themed plays may take the lead in the near term ahead of Trump’s inauguration January 20. Key themes to watch include JSSEZ initiative, Penang’s ongoing LRT project and potential emergence of Sarawak as an energy hub.

Stocks to watch: 

Technology: *ADB*, CLOUDPT, *EG*, *ITMAX*
Utility: KJTS, *PEKAT*, SLVEST, UUE
Consumer: *GCB*
Building Material: UNIQUE

Source: M+

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