M+ Online Morning Market Buzz - 25 Jul 23

Dow Jones: 35,411.24 pts (+183.55pts, +0.52%)
⬆️ Resistance: 36200
⬇️ Support: 33900

FBM KLCI: 1,424.69 pts (+11.17pts, +0.79%)
⬆️ Resistance: 1460
⬇️ Support: 1380

HSI Index: 18,668.15 pts (-407.11pts, -2.13%)
⬆️ Resistance: 19800
⬇️ Support: 18200

Crude Palm Oil: RM4,140 (-RM24, -0.58%)
⬆️ Resistance: 4300
⬇️ Support: 3800

Brent Oil: $82.74 (+$1.67, +2.06%)
⬆️ Resistance: 84.90
⬇️ Support: 76.70

Gold: $1,954.73 (-$7.21, -0.37%)
⬆️ Resistance: 2030
⬇️ Support: 1920

M+ Online Technical Trading Stocks - 25 Jul 23

Stock Name: PLS (9695)
Entry: Buy above RM0.96
Target: RM1.02 (6.3%), RM1.08 (12.5%)
Stop: RM0.92 (-4.2%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: WASCO (5142)
Entry: Buy above RM0.975
Target: RM1.05 (7.7%), RM1.10 (12.8%)
Stop: RM0.925 (-5.1%)
Shariah: Yes
Technical: Resistance breakout

Source: Bloomberg, M+ Online

Market update: Strong buying interest amongst the key index components continues to nudge the FBM KLCI higher. The moderating inflationary pressure that recorded at +2.4% YoY in June also provided near term impetus to the local bourse. The lower liners, however, endured another session of weakness on the back of extended profit taking activities, which we deemed to be healthy at this point of time, premised on the overbought conditions. Still, we expect the lower liners could play catch-up with the recovery move after the consolidation phase. Elsewhere, investors will continue to keep a close watch on the US corporate earnings releases. Commodities wise, the Brent crude oil advanced beyond USD82/bbl, while the CPO advanced above RM4,100/MT.

Sector focus: The weakening of ringgit Malaysia against the US Dollar may present some trading opportunities within export-related stocks such as furniture and plantation. The latter will also be boosted by the strong CPO prices that rallied above RM4,100/MT. With Brent oil prices clawing its way above USD80/bbl, we reckon that the energy sector may march higher.

Stocks to watch:
Plantation: TAANN, SIMEPLT, PLS, HSPLANT
Energy: HIBISCS, WASCO, UZMA
Healthcare: HARTA, KOSSAN, TMCLIFE
Telecommunication & Media: TIMECOM, CDB, OPCOM
Others: GAMUDA, PERTAMA, KGB, ANNJOO, MSM

Source: M+ Online

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