The FBM KLCI ended another session lower despite the rebound move on Hang Seng
Index yesterday. Meanwhile, the US stock markets headed for a pullback after a long
stretch of rally led by the profit taking activities in mega caps and energy shares.
The market’s narrative continues to point towards a firmer speculation that the Fed
will be cutting the interest rates in 1Q24 as private payroll increased by 103k in
November (below economists’ expectation of 130k). Nevertheless, we expect some
buying interest may emerge on the local equities in view of Nvidia’s boss Jensen
Huang to make his maiden visit to Malaysia. On the commodity markets, the Brent
oil prices tanked another 3.65% to trade around USD74/bbl as larger-than-expected
rise in US gasoline inventories extended worries on fuel demand.
Sector focus: As Nvidia’s boss Jensen Huang is visiting Malaysia this week, we
believe the overall Technology sector will be trading in a more positive environment.
There also could be data centre-related talks which may provide upside
opportunities for the YTL-related counters. Meanwhile, we reckon traders to avoid
O&G counters over the near term in view of weak Brent oil prices.
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