M+ Online Morning Market Buzz - 3 Aug 23

Dow Jones: 35,282.52 pts (-348.16pts, -0.98%)
⬆️ Resistance:  36400
⬇️ Support:  34600

FBM KLCI: 1,444.56 pts (-6.68pts, -0.46%)
⬆️ Resistance:  1500
⬇️ Support:  1420

HSI Index: 19,517.38 pts (-493.74pts, -2.47%)
⬆️ Resistance:  20800
⬇️ Support:  19000

Crude Palm Oil: RM3,900 (-RM15, -0.38%)
⬆️ Resistance:  4170
⬇️ Support:  3760

Brent Oil: $83.20 (-$1.71, -2.01%)
⬆️ Resistance:  87.80
⬇️ Support:  81.10

Gold: $1,934.45 (-$9.84, -0.51%)
⬆️ Resistance:  2030
⬇️ Support:  1900

M+ Online Technical Trading Stocks - 3 Aug 23

Stock Name: RANHILL (5272)
Entry: Buy above RM0.59
Target: RM0.635 (7.6%), RM0.655 (11.0%)
Stop: RM0.555 (-5.9%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: WCEHB (3565)
Entry: Buy above RM0.70
Target: RM0.75 (7.1%), RM0.775 (10.7%)
Stop: RM0.66 (-5.7%)
Shariah: No
Technical: Bullish engulfing candle

Source: Bloomberg, M+ Online

Market update: The FBM KLCI remained downbeat alongside the weakness across the regional markets, dragged down by the concern of the US credit rating cut by Fitch Ratings and the renewed tension between the US and China. The lower liners are also not faring any better as traders continue to pare holdings ahead of the Malaysia state election. Looking ahead, we reckon further pullback is in store that may mirror the weakness on Wall Street overnight. Meanwhile, investors may also keep a close watch on several key economic data such as the UK's Bank of England's interest rate decision as well as US Non-Manufacturing PMI and Factory Orders to be released later today. Commodities wise, the Brent crude oil slipped below USD84/bbl, while the CPO hovered around RM3,900/MT.

Sector focus: We continue to advocate trading to skew towards sectors that are defensive in nature such as REIT and utilities. Meanwhile, the technology sector may continue to endure further downside over the near term. The energy sector may also experience some minor pullback in tandem with the lower crude oil prices.

Stocks to watch:
Utilities: *YLTPOWR*, *RANHILL*, TENAGA, MFCB
REIT: UOAREIT, *YTLREIT*, AXREIT
Construction: *AME*, PUNCAK, *WCEHB*
Property: *UEMS*, KPPROP, IWCITY
Others: UCHITEC, LEESK, *UZMA*, MSM, *OCNCASH*

Source: M+ Online

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