M+ Online Morning Market Buzz - 4 Aug 23 
 
Dow Jones: 35,215.89 pts (-66.63pts, -0.19%) 
⬆️ Resistance:  36400 
⬇️ Support:  34500 
 
FBM KLCI: 1,441.85 pts (-2.71pts, -0.19%) 
⬆️ Resistance:  1500 
⬇️ Support:  1410 
 
HSI Index: 19,420.87 pts (-96.51pts, -0.49%) 
⬆️ Resistance:  20800 
⬇️ Support:  19000 
 
Crude Palm Oil: RM3,848 (+RM24, +0.63%) 
⬆️ Resistance:  4120 
⬇️ Support:  3750 
 
Brent Oil: $85.14 (+$1.94, +2.33%) 
⬆️ Resistance:  87.80 
⬇️ Support:  80.80 
 
Gold: $1,934.06 (-$0.39, -0.02%) 
⬆️ Resistance:  2020 
⬇️ Support:  1900 
 
M+ Online Technical Trading Stocks - 4 Aug 23 
 
Stock Name: PWROOT (7237) 
Entry: Buy above RM2.07 
Target: RM2.16 (4.3%), RM2.23 (7.7%) 
Stop: RM2.00 (-3.4%) 
Shariah: Yes 
Technical: Monitor for breakout 
 
Stock Name: T7GLOBAL (7228) 
Entry: Buy above RM0.485 
Target: RM0.52 (7.2%), RM0.55 (13.4%) 
Stop: RM0.455 (-6.2%) 
Shariah: Yes 
Technical: Monitor for breakout 
 
Source: Bloomberg, M+ Online

Market update: The FBM KLCI recorded its third day of losing streak accompanied by lower trading value, spooked by the renewed volatility on Wall Street overnight. We believe the local bourse performance may mirror the weaker sentiment from Wall Street and the regional markets. Nevertheless, investors may position themselves ahead of the Malaysia state elections and the August quarterly reporting season. Elsewhere, the focus may shift towards the release of unemployment data in the US tonight to provide further clues on the US Federal Reserve’s next action. Commodities wise, the Brent crude oil rallied above USD85/bbl after OPEC and Russia committed to extend production cuts into September 2023, while the CPO hovered around RM3,900/MT.

Sector focus: Following the jump in crude oil prices, we reckon that the energy sector may outperform. We also continue to favour sectors that are defensive in nature such as REIT and utilities amid the renewed market volatility. The strong delivery of Proton sales may buoy the automotive sector.

Stocks to watch:
REIT: IGBREIT, SENTRAL, CLMT, KIPREIT
Consumer Products & Services: PWROOT, MYNEWS, RGB
Energy: T7GLOBAL, CARIMIN, VELESTO 
Plantation: SIMEPLT, PLS, JTIASA
Others: RCECAP, YTL, MSC, HHRG, HOMERIZ

Source: M+ Online

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