M+ Morning Market Buzz - 31 Jan 25

Dow Jones: 44,882.13 pts (+168.61pts, +0.38%)
⬆️ Resistance:  46000
⬇️ Support:  43200

FBM KLCI: 1,552.69 pts (-6.28pts, -0.40%)
⬆️ Resistance:  1610
⬇️ Support:  1520

HSI Index: 20,225.11 pts (+27.34pts, +0.14%)
⬆️ Resistance:  20800
⬇️ Support:  19400

Crude Palm Oil: RM4,279 (+RM61, +1.45%)
⬆️ Resistance:  4380
⬇️ Support:  4070

Brent Oil: $76.58 (+$0.49, +0.64%)
⬆️ Resistance:  80.60
⬇️ Support:  74.50

Gold: $2,759.36 (+$33.70, +1.22%)
⬆️ Resistance:  2860
⬇️ Support:  2680

M+ Market Update – 31 Jan 25
Bargain Hunting To Emerge
 
The FBMKLCI extended its losses as global sentiment weakened amid concerns over the rise of a low-cost AI model from the Chinese startup DeepSeek. Meanwhile, Wall Street closed higher following quarterly results from Tesla and Meta, despite the Fed indicated of a slower easing interest rate environment ahead. Traders will closely watch upcoming data, including (i) the core PCE index and (ii) the employment cost index later today. In the commodities market, Brent Crude rebounded above USD76 per barrel mark, while gold prices charged towards all-time-high above USD2,790 and CPO prices stablised above RM4,270.

Sector Focus: After the sell-offs in the past few trading sessions, we believe the FBMKLCI is set to open higher, as bargain-hunting could emerge within the Technology sector, taking cue from Wall Street. Also, we opine that trading interest will pick up in gold-related counters as gold hit all-time-high, despite the hawkish stance from the Fed. Besides, we believe domestic-themed play may take the lead driven by (i) ongoing Penang LRT project RM9bn tenders, (ii) JSSEZ initiatives, and (iii) the potential emergence of Sarawak as an energy hub. Lastly, we see trading opportunity on DSONIC, after securing contract extension of passport chips to Malaysia immigration department.

Stocks to watch: 

Technology: *ADB*, KGB, *RAMSSOL*
Utility: *PEKAT*, YTLPOWR
Gold: *AUMAS*
Furniture: *SSF*

Source: M+

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