The stock market typically performs well in the last five trading days of the year and the first two of the new year.

Santa Claus Rally

The FBM KLCI reclaimed the 1,600 level, but further gains may be limited due to a lack of fresh catalysts. Lower liners are expected to remain subdued as trading activity slows during the festive season.

Market Outlook

Positive momentum in Asian markets is anticipated following China’s announcement of massive bond issuances in 2025. However, uncertainties remain for 2025 due to tighter global financial conditions, higher interest rates, and a stronger US dollar.

Sector Focus: Auto Sector

Challenges expected due to weaker non-national car sales, rising competition from Chinese players, and easing backlog orders.

Utilities & Construction: Expected to continue building on recent gains.

Technical Commentary: The FBM KLCI shows bullish momentum, with key indicators turning positive. Immediate resistance is at 1,625, while support is at 1,570.

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Staff Writer

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