M+ Online Morning Market Buzz - 27Sep23

Dow Jones: 33,618.88 pts (-388.00pts, -1.14%)
⬆️ Resistance: 35500
⬇️ Support: 32900

FBM KLCI: 1,445.55 pts (+2.10pts, +0.15%)
⬆️ Resistance: 1490
⬇️ Support: 1420

HSI Index: 17,466.90 pts (-262.39pts, -1.48%)
⬆️ Resistance: 18500
⬇️ Support: 17100

Crude Palm Oil: RM3,699 (+RM7, +0.19%)
⬆️ Resistance: 3840
⬇️ Support: 3570

Brent Oil: $93.29 (+$0.80, +0.86%)
⬆️ Resistance: 96.70
⬇️ Support: 90.00

Gold: $1,900.65 (-$15.27, -0.80%)
⬆️ Resistance: 1990
⬇️ Support: 1870

Source: Bloomberg, M+ Online

Market update – 27Sep23

The FBM KLCI had a slight rebound at the end of the session as bargain hunting activities resurfaced. Meanwhile, Wall Street was significantly lower as investors were concerned that the elevated interest rate environment could dampen the economic outlook. Also, the 10-year US Treasury yield climbed to a fresh 16-year high. With the Aug new home sales and US Sep consumer confidence index came in below estimates, we believe the overall market conditions may persist in the negative tone, and likely to spill over to stocks on the local bourse. Commodities wise, the Brent crude oil has rebounded and traded near the USD94/bbl level, while the CPO prices were trading near the RM3,700/MT level.

Sector focus: With the trading environment turning more cautious, we expect selling pressure to build up within the technology stocks, taking cues from Nasdaq overnight negative performance. However, we like defensive sectors such as Utilities that have stable cash flow and dividends. Meanwhile, traders may continue to position around the mega infrastructure theme within the Construction, Building Material and Property sectors ahead of the Budget 2024.

Stocks to watch:

Aviation: CAPITALA
Technology: GTRONIC
Consumer: LHI, MASTER, PELIKAN, PTRB
Property: KSL
Construction: MUHIBAH
O&G: T7GLOBAL

Source: M+ Online

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