Opening Daily Highlight
Mixed
Subdue Trading Ahead
Thu, 26-Dec-2024 06:08 am
by Research Team • Apex Research

  • Malaysia Market Review: The FBM KLCI rose by +0.43%, supported by gains in YTL Power, Public Bank and Tenaga Nasional, in line with broadly higher regional markets. Sector performance was skewed to the positive, with gains in energy and utilities indices offsetting declines in construction and transportation & logistics.

     

  • Global Markets Review: Wall Street was showered with Christmas cheer by extending its winning streak, as cooler-than-expected inflation data continued to push megacap stock performance. Asian and European markets also moved in a broadly positive direction as investors braced for fewer rate cuts by the Fed in the coming year.

     

  • Market Outlook: While the key index managed to re-claim the 1,600 psychological level, we reckon that further upsides will be measured in view of the absence of fresh leads. Likewise, the lower liners may remain muted as trading activity simmered post mid-week festive break as investors may remain in the sidelines till early next year. With China planning to issue a record high of USD411bn worth of special treasury bonds in 2025 in bid to ramp up fiscal stimulus to revive a faltering economy, we expect markets may attempt to build onto the previous session gains. Still, there is some uncertainty pertaining to 2025’s outlook, namely to do with the tighter global financial conditions in 2025, due to higher interest rates and a stronger US Dollar.

     

  • Sector focus. We reckon the technology sectors may march higher, mirroring the positive stance from Nasdaq in recent trading days. The plan to remove 85% demand capacity cap for non-domestic users under its self-consumption (SelCo) programme effective 1 Jan 2025 is expected to benefit RE players.

     

  • Technical Commentary: The FBM KLCI formed another bullish candle re-claimed the 1,600 psychological level ahead of the mid-week festive break. The extended consolidation is expected to remain in place overtime. Indicators remained negative as MACD Line slipped below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,625. Support is envisaged around 1,570.

Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.453239 4.488967
EUR 4.644097 4.653715
CNY 0.611396 0.612321
HKD 0.573248 0.578035
SGD 3.277263 3.304067