M+ Morning Market Buzz - 5 Feb 25

Dow Jones: 44,556.04 pts (+134.13pts, +0.30%)
⬆️ Resistance:  46000
⬇️ Support:  43100

FBM KLCI: 1,564.56 pts (+10.93pts, +0.70%)
⬆️ Resistance:  1600
⬇️ Support:  1520

HSI Index: 20,789.96 pts (+572.70pts, +2.83%)
⬆️ Resistance:  21400
⬇️ Support:  19400

Crude Palm Oil: RM4,308 (+RM20, +0.46%)
⬆️ Resistance:  4510
⬇️ Support:  4170

Brent Oil: $76.20 (+$0.24, +0.32%)
⬆️ Resistance:  79.30
⬇️ Support:  72.70

Gold: $2,842.71 (-$1.38, -0.05%)
⬆️ Resistance:  2910
⬇️ Support:  2690

M+ Market Update – 05 Feb 25
Shifting Focus To The Upcoming Earnings Season
 
The local bourse reversed its losses and closed mostly higher, supported by banking heavyweights. Meanwhile, despite China’s retaliatory measures, Wall Street closed higher as traders shrugged off the trade tensions between US-China and focuses on several upbeat earnings announced including Palantir and Spotify which supported the key index. After a slowdown in the US JOLTS openings, traders will continue to monitor the (i) ISM Non-Manufacturing PMI, (ii) S&P Global Services PMI and (iii) China’s Caixin Services PMI today. In the commodities market, Brent Crude is still trading around USD76 per barrel, while gold prices charted its all-time high at USD2,845. The CPO prices maintained above the RM4,300 mark.

Sector Focus: Given the pullback in Construction sector over the past month, we opine it might present bargain-hunting opportunities, supported by JSSEZ initiatives and data centre boom in the country. Although traders have turned cautious toward glove counters following President Trump’s decision to pause his tariff orders on Mexico and Canada, we believe investors may hold on as earnings season approaches and we expect sequential growth in their earnings. We also favour Oriental Kopi for its explosive growth potential, its candidacy for a main market transfer and the anticipated shariah status bode well for the company.

Stocks to watch: 

Utility: *BMGREEN*, KJTS, PEKAT
Consumer: *GCB*, *KOPI*
Plantation: *JTIASA*
O&G: *HAWK*
IFM: AWC
Healthcare: KPJ
Gold: AUMAS
Technology: ITMAX

Source: M+

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