Market Summary: Sector Focus on property profit taking

Profit-Taking: Sectors like property and utilities may face profit-taking activities after recent gains.

Energy Sector: Expected to attract bargain hunting following crude oil price gains, though investors are advised to avoid OGSE companies dependent on Petronas, given potential workforce reductions.

Market Outlook for 2025

The FBM KLCI ended 2024 12.9% higher YoY, but profit-taking pressure is anticipated.

Lower liners could also face selling pressure.

Manufacturing PMI data from the US, China, EU, and Malaysia will be in focus this week.

Volatility in 2025 is likely due to uncertainties around Trump’s second term, geopolitical risks, and Federal Reserve policies.

Technical Analysis

FBM KLCI rose for the fifth session, drifting higher from SMA50.

Indicators remain positive (MACD above Signal Line; RSI > 50).

Immediate resistance is at 1,645; support around 1,600.

Global Markets

Rate Cut Trajectory & Sentiment: Reserve’s rate cut trajectory is expected to weigh on market sentiment as the new year begins.

Wall Street: Closed 2024 negatively with all indices in the red due to elevated Treasury yields.

Europe: The Stoxx 600 gained 0.6% in thin trading.

Asia: Mixed performance; Shanghai Composite dropped 1.6% due to slower manufacturing growth in China, highlighting insufficient stimulus impacts.

Investors should prepare for a more volatile year ahead with cautious positioning across sectors and global markets.

Property

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Staff Writer

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