M+ Online Morning Market Buzz - 7Sep23

Dow Jones: 34,443.19 pts (-198.78pts, -0.57%)
⬆️ Resistance: 35800
⬇️ Support: 33700

FBM KLCI: 1,460.62 pts (+5.79pts, +0.40%)
⬆️ Resistance: 1500
⬇️ Support: 1430

HSI Index: 18,449.98 pts (-6.93pts, -0.04%)
⬆️ Resistance: 19300
⬇️ Support: 17900

Crude Palm Oil: RM3,872 (-RM9, -0.23%)
⬆️ Resistance: 4150
⬇️ Support: 3790

Brent Oil: $90.60 (+$0.56, +0.62%)
⬆️ Resistance: 93.00
⬇️ Support: 84.10

Gold: $1,916.56 (-$9.56, -0.50%)
⬆️ Resistance: 2000
⬇️ Support: 1880

Source: Bloomberg, M+ Online

Market update - 7Sep23

After a sharp sell down, buying support re-emerged and we noticed the FBM KLCI rebounded, thanks to the banking and energy index members. Also, we believe the surge in the oil price has lifted the sentiment in Malaysia. However, with the negative tone on Wall Street following the concerns over a potential hike this year, coupled with the slowdown in manufacturing activities in Germany, profit taking activities may spillover and limits the upside potential on the local front. Commodities wise, the Brent crude oil stayed firmly above the USD90/bbl level, while the CPO prices continued to consolidate below the RM4,000/MT level.

Sector focus: Despite the weaker performance on Wall Street, the news on the “breakthrough” of 5G processor used in Huawei’s latest smartphone could provide some catalysts towards the technology sector on the local front, especially those that are linked with China. Meanwhile, we still favour the O&G sector due to the strong Brent oil prices. Also, we believe traders may lookout for value and defensive counters under this uncertain environment.

Stocks to watch:
Technology: MI, PENTA, UNISEM
O&G: UZMA
Shipping: SYGROUP
Solar-related: SAMAIDEN
Building material: HUMEIND, MELEWAR
Property: OSK, PARAMON

Source: M+ Online

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