M+ Online Morning Market Buzz - 6Sep23

Dow Jones: 34,641.97 pts (-195.74pts, -0.56%)
⬆️ Resistance: 35800
⬇️ Support: 34000

FBM KLCI: 1,454.83 pts (-7.89pts, -0.54%)
⬆️ Resistance: 1500
⬇️ Support: 1430

HSI Index: 18,456.91 pts (-387.25pts, -2.06%)
⬆️ Resistance: 19300
⬇️ Support: 18000

Crude Palm Oil: RM3,919 (+RM18, +0.46%)
⬆️ Resistance: 4150
⬇️ Support: 3830

Brent Oil: $90.04 (+$1.04, +1.17%)
⬆️ Resistance: 93.00
⬇️ Support: 83.50

Gold: $1,926.12 (-$16.57, -0.85%)
⬆️ Resistance: 2000
⬇️ Support: 1890

Source: Bloomberg, M+ Online

Market update - 5Sep23

The profit taking activities persisted on both the local and global stock markets after a significant rally over the past few weeks. We believe traders may stay cautious as the 10-year Treasury spiked following the jump in oil price (due to supply cuts from Saudi and Russia towards end-December). With both the Treasury yield and oil price on a rising formation, the market could be expecting that the Fed may stay slightly hawkish in the near term, which may pose downside risk towards the stock markets. Also, traders may monitor the developments on the 2 Johor by-elections that will be held this weekend. Commodities wise, the Brent crude oil crossed above the USD90/bbl, while the CPO prices are trading in a pullback phase below RM4,000/MT.

Sector focus: With the anticipation of slightly hawkish tone from the Fed, the overall broader market could take a breather, despite the on-going positive catalysts from the NIMP and NETR blueprints. However, we like the O&G sector due to the firmer Brent oil prices. Meanwhile, under this uncertain environment, traders may watch out for value and defensive counters which pay decent dividend yields.

Stocks to watch:
Consumer: HPPHB, PELIKAN, PWF, XL
Technology: GTRONIC, SYSTECH
Building material: HUMEIND
O&G: WASCO
Glove: KOSSAN
Others: SAMAIDEN

Source: M+ Online

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