The FBMKLCI experienced a solid start for 2024, with decent buying interest from
foreign funds into the local market. However, the US stock markets traded on a
flattish tone on Friday amid a mixed set of data where the robust jobs data was
offset by the softer ISM services PMI, snapping the 9-week winning streak as the 10-
year US Treasury yield spiked above 4.00%. Also, the market was unsure and had
contrasting views on when the interest rate cuts may begin. This week, CPI and PPI
data will be watched closely to determine the interest rates direction. On the local
front, we believe the buying support may take a breather this week after a strong
upward move last week. On the commodity market, Brent oil price ended higher on
Friday amid rising geopolitical tension in the Middle East and Red Sea regions.
Sectors focus: Despite profit taking activities may emerge on the broader market,
the trading interest may continue within selected sectors such as the Technology
sector as the sector just had a flag breakout last week. Also, we still like the Johor theme
with the KL-SG HSR to have more clarity after the RFI deadline by 15th of Jan;
benefiting the Property, Construction, Building Material and Utilities sectors.
Meanwhile, the disruption of shipping and logistics following the Red Sea attack may
provide upside potential for the Transportation sector.
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