M+ Online Morning Market Buzz - 27 Jul 23

Dow Jones: 35,520.12 pts (+82.05pts, +0.23%)
⬆️ Resistance:  36400
⬇️ Support:  34400

FBM KLCI: 1,449.29 pts (+12.50pts, +0.87%)
⬆️ Resistance:  1480
⬇️ Support:  1380

HSI Index: 19,365.14 pts (-69.26pts, -0.36%)
⬆️ Resistance:  19900
⬇️ Support:  18200

Crude Palm Oil: RM4,050 (-RM12, -0.30%)
⬆️ Resistance:  4300
⬇️ Support:  3880

Brent Oil: $82.92 (-$0.72, -0.86%)
⬆️ Resistance:  85.60
⬇️ Support:  77.10

Gold: $1,972.07 (+$7.11, +0.36%)
⬆️ Resistance:  2030
⬇️ Support:  1920

Market update: The key index has performed relatively well to hold above the 1,400 level, backed by some fresh buying from foreign institutional participants. Although there was a bout of positive signs on the local bourse, the lower liners are expected to see a consolidation as market participants may trim their holdings ahead of the upcoming states election. Expectedly, the US Federal Reserve delivered another 25 basis points of rate hike. Going forward, market expectations are skewing towards a potential pause in interest rate hikes, which is deemed to be positive for the equities markets. Still, we are cautious over the extended rally and it may warrant a mild pullback over the near term. Commodities wise, the Brent crude oil took a pullback below USD83/bbl, while the CPO steadied above RM4,000/MT.

Sector focus: Strong passenger load factor numbers delivered by Air Asia X may buoy the aviation and tourism-related stocks. On the flipside, we expect mild profit taking activities to emerge within the energy sector that may take cue from the pullback in crude oil prices.

Stocks to watch:
Utilities: PETGAS, TENAGA, MFCB, YTLPOWR
Aviation-related: AAX, CAPITALA, AIRPORT 
Property: EWEIN, KPPROP, PARAMON
Consumer Products & Services: ZHULIAN, CCK, FOCUSP 
Others: EPMB, YXPM, TOMEI, HUMEIND, SLVEST

Source: M+ Online

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