M+ Online Morning Market Buzz - 5 May 23

Dow Jones: 33,127.74 pts (-286.50pts, -0.86%)
⬆️ Resistance:  35000
⬇️ Support:  32300

FBM KLCI: 1,425.99 pts (-0.12pts, -0.01%)
⬆️ Resistance:  1460
⬇️ Support:  1390

HSI Index: 19,948.73 pts (+249.57pts, +1.27%)
⬆️ Resistance:  20700
⬇️ Support:  19200

Crude Palm Oil: RM3,425 (+RM4, +0.12%)
⬆️ Resistance:  3560
⬇️ Support:  3230

Brent Oil: $72.50 (+$0.17, +0.24%)
⬆️ Resistance:  81.90
⬇️ Support:  69.90

Gold: $2,050.28 (+$11.31, +0.55%)
⬆️ Resistance:  2110
⬇️ Support:  1940

M+ Online Technical Trading Stocks - 5 May 23

Stock Name: KGB (0151)
Entry: Buy above RM1.51
Target: RM1.58 (4.6%), RM1.63 (7.9%)
Stop: RM1.44 (-4.6%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: CCK (7035)
Entry: Buy above RM0.725
Target: RM0.755 (4.1%), RM0.785 (8.3%)
Stop: RM0.69 (-4.8%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

Market update: The FBM KLCI ended flat after erasing all its intraday losses as buying momentum emerged in the banking sector following Bank Negara Malaysia’s surprise OPR hike of 25 bps. However, the fears over the US banking crisis remained in place, and that may limit the upside potential for the near term as investors may shift their position towards a more defensive approach at least until the banking crisis is resolved. Nevertheless, traders may look at the corporate earnings season for earnings surprises trades. Meanwhile, the gold price is hovering firmly above USD2,000. 

Sector focus: Following the surprise Overnight Policy Rate (OPR) hike by Bank Negara Malaysia, follow-through buying interest may emerge in the banking sector for a short-term trade. Besides, gold related counters may shine over nearer term given the solid gold prices. Also, we expect the positive results from Apple may spur some demand on our technology stocks.

Stocks to watch:
Aviation AAX, AIRPORT
Utilities: YTLPOWR, GASMSIA, RANHILL
REIT: AMEREIT, IGBREIT
Financial Services: RCECAP, MAYBANK
Others: KGB, SUNCON, T7GLOBAL, YTL, SIGN, CATCHA, CCK

Source: M+ Online

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