The FBMKLCI ended higher at 1602.99 pts, driven by key heavyweights such as YTLPOWR and PBBANK. The Energy sector saw the largest rally, led by YINSON and DAYANG, while both the Construction (-0.34%) and Transportation & Logistic sectors ended as the worst-performing sectors.

On the global front, many markets were closed yesterday for Christmas holiday. Wall Street extended its gains and closed higher on Tuesday, with tech stocks led the advancement again. Similarly, both the European and Asian markets also ended
higher due to gains in the Japan automotive sector.

The local bourse traded higher, surpassing the 1,600 level, as buying interest was observed across blue-chip stocks during the window-dressing period. In the US, Wall Street continued its upward trend on Christmas Eve, led by tech stocks, including a
7.4% surge in TESLA and gains of more than 1% in both AMAZON and META. Meanwhile, traders will keep an eye on key economic data, such as initial jobless claims later today and crude oil inventories on Friday. In the commodities market,
Brent crude oil ended higher, closing above the USD73 level. Gold prices steadied around USD2,610-2,620, while CPO prices finally rebounded above the RM4,500 mark.

With the slight rebound in crude oil prices, traders may focus on O&G- related counters ahead of the US crude oil inventories data release this Friday.

Additionally, as the government has removed the 85% demand cap under the self- consumption (SelCo) program and allowed solar installations on land and water starting January 2025, traders can look for opportunities in solar-related companies.

Malacca Securities said it remains optimistic about the data center value chain industries within the Construction, Building Materials, Technology, and Utilities sectors. Furthermore, the market is likely to favour Technology stocks amid the weakening ringgit bias.

Despite closing above the 1,600 psychological mark, the FBMKLCI is still in its downtrend mode, trading below all the MA lines. The MACD Histogram expanded negatively, while the RSI is below 50, suggesting that the momentum is negative. Resistance is anticipated around 1,617-1,622, and support is set at 1,582-1,587.