Window Dressing and Rate Cut Optimism Rally Research Team research

The FBM KLCI traded mixed as profit taking activities kicked in after a significant
rally last week, but the Properties and Utilities performed on a stronger tone. In the
US, following the dovish tone from the Fed, signalling at least 3 rate cuts next year,
the stock markets continued to charge higher for the 9th session. This week, the
market will be watching the important economic data releases such as the US GDP
and PCE price index, should there be any disappointment in the data, it might affect
the market sentiment. On the local front, we believe window dressing activities may
persist throughout the next few trading sessions, similar to the previous years. On
the commodity markets, Brent oil prices rebounded nearer to the USD80/bbl zone
amid the heightened tension in the Red Sea.

Sector focus: Given the strong rally in the US, we could be anticipating buying
interest to spillover towards the Technology sector on the local front. Meanwhile, we
have noticed trading interest building up within the Property segment amid the new
MM2H programme. Besides, commodity related segments namely the O&G and
Gold sectors could stay relatively strong amid the softer dollar trend going forward.
In the recent Glove industry rally, we expect profit taking activities to emerge.

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