The FBM KLCI extended the rebound for the second session as ongoing window
dressing activities lifted the KLCI with buying support seen within the banking and
plantation heavyweights. Meanwhile, the US stock markets flirted along the all-timehigh
zone for the Dow and S&P500. The expectation of 3 interest rate cuts next year
by the Fed will continue to support the overall market conditions in the US, eventually
spilling over towards the stocks on the local front. Also, with the ongoing window
dressing activities, should lift the FBM KLCI higher for the final day of the year. On
the commodity markets, Brent oil traded below the USD78/bbl mark as the latest
government data showed inventory levels at Cushing have expanded, indicating a
growing supply surpasses demand, while shipping firms are now resuming the Red
Sea route as the area is being safeguarded by US-led maritime task force.
Sector focus: Given the overall positive market conditions in the US, we expect the
buying support could be seen within the Technology sector. From the buying flow
yesterday, there are several sectors that were being traded higher, namely the
Renewable Energy, Construction as well as selected Consumer stocks. Besides, we
like the Building Material, Property as well as some buying interest were observed
within the Plantation sector.
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