M+ Morning Market Buzz - 3 Feb 25

Dow Jones: 44,544.66 pts (-337.47pts, -0.75%)
⬆️ Resistance:  46000
⬇️ Support:  43200

FBM KLCI: 1,556.92 pts (+4.23pts, +0.27%)
⬆️ Resistance:  1610
⬇️ Support:  1520

HSI Index: 20,225.11 pts (+27.34pts, +0.14%)
⬆️ Resistance:  20800
⬇️ Support:  19800

Crude Palm Oil: RM4,289 (+RM10, +0.23%)
⬆️ Resistance:  4410
⬇️ Support:  4110

Brent Oil: $75.67 (-$0.22, -0.29%)
⬆️ Resistance:  80.60
⬇️ Support:  74.50

Gold: $2,798.41 (+$3.82, +0.14%)
⬆️ Resistance:  2880
⬇️ Support:  2680

M+ Market Update – 03 Feb 25
Volatility To Rise After Trump’s Tariffs
 
The FBMKLCI recovered slightly from its downward pressure as bargain hunting activities were seen in banking and utility heavyweights. Meanwhile, Wall Street closed lower following President Trump’s tariffs implementation on Canada, Mexico, and China, which took effect on Saturday. Technology sector remained a key focus driven by the rise of China’s AI startup, DeepSeek. This week, traders will closely monitor the (i) ISM Manufacturing and Non-Manufacturing PMIs, (ii) initial jobless claims, and (iii) US unemployment rate. In the commodities market, Brent Crude is trading close to USD76 per barrel, while gold prices charged toward an all-time high of USD2,817 before closing slightly below the USD2,800 mark. Meanwhile, CPO prices broke above their short term RM4,278 resistance level.

Sector Focus: Given last Friday’s sell-offs in Wall Street and the ongoing negative sentiment in Wall Street futures following President Trump’s tariff remarks, we expect the local bourse to mirror the US performance. Investors are likely to shift toward defensive sector like REIT in view of their defensive characteristic and strong quarterly performances due to higher net property income. Meanwhile, we believe renewable energy will remain on traders’ radar, driven by various government initiatives, including NETR and LSS and CGPP.

Stocks to watch: 

Utility: MNHLDG, *SCGBHD*
Technology: *RAMSSOL*
Gold: *AUMAS*
Construction: BNASTRA
Consumer: *GCB*
Building Material: *UNIQUE*

Source: M+

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