M+ Morning Market Buzz - 27 Jan 25

Dow Jones: 44,424.25 pts (-140.82pts, -0.32%)
⬆️ Resistance:  45500
⬇️ Support:  42700

FBM KLCI: 1,573.73 pts (-3.47pts, -0.22%)
⬆️ Resistance:  1630
⬇️ Support:  1540

HSI Index: 20,066.19 pts (+365.63pts, +1.86%)
⬆️ Resistance:  20700
⬇️ Support:  19300

Crude Palm Oil: RM4,216 (+RM26, +0.62%)
⬆️ Resistance:  4370
⬇️ Support:  4050

Brent Oil: $78.50 (-$0.18, -0.23%)
⬆️ Resistance:  82.90
⬇️ Support:  76.10

Gold: $2,770.58 (-$3.18, -0.11%)
⬆️ Resistance:  2850
⬇️ Support:  2640

M+ Market Update – 27 Jan 25
Bargain Hunting May Be Seen In YTL Stocks
 
The local bourse closed lower, dragged down by sell-offs in YTL-related counters following the issuance of a 1-for-5 non-tradable warrant, which is seen as an inflexible corporate exercise. In the US, Wall Street closed lower ahead of the FOMC meeting, which is expected to provide clarity on the direction of future rate cuts. Traders will closely monitor key economic data, including (i) US economic growth, (ii) unemployment claims, and (iii) the core PCE index. In the commodities market, Brent crude oil remained below USD80, while gold prices closed higher, surpassing the USD2,750. CPO prices traded flat around RM4,200.

Sector Focus: With the proposition of issuing bonus warrants for YTL-related counters, where the exercise price is set at RM2.45 for YTLPOWR, we believe bargain-hunting opportunities will emerge if there is further retracement. Meanwhile, with the recent announcement from the Ministry of Communication, we believe that the 67 identified industrial areas set to be equipped with 5G facilities will benefit companies involved in underground utilities work, at least in the mid-term. Also, we are positive on the ongoing NETR and LSS projects, coupled with the data center boom, which are expected to drive higher electricity demand in the RE segment.

Stocks to watch: 

Financial: *ABMB*, *AMBANK*, MAYBANK
Utility: *KENERGY*, *PEKAT*
Technology: *CORAZA*
Consumer: *FOCUSP*
Logistics: WPRTS

Source: M+

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