M+ Online Morning Market Buzz - 2 Oct 23

Dow Jones: 33,507.50 pts (-158.84pts, -0.47%)
⬆️ Resistance:  34700
⬇️ Support:  32700

FBM KLCI: 1,424.17 pts (-15.94pts, -1.11%)
⬆️ Resistance:  1480
⬇️ Support:  1400

HSI Index: 17,809.66 pts (+436.63pts, +2.51%)
⬆️ Resistance:  18500
⬇️ Support:  17100

Crude Palm Oil: RM3,767 (-RM4, -0.11%)
⬆️ Resistance:  3930
⬇️ Support:  3600

Brent Oil: $92.20 (+$0.23, +0.25%)
⬆️ Resistance:  99.70
⬇️ Support:  90.00

Gold: $1,848.63 (-$16.24, -0.87%)
⬆️ Resistance:  1970
⬇️ Support:  1810

Market update – 2 Oct 23 

The FBM KLCI has declined significantly lower on the final day of the September month amid selling pressure in the banking heavyweights. Meanwhile, Wall Street traded mixed prior to the passing of a short-term bill just 3 hours before the deadline; averting a shutdown for another 45 days. Thus, we expect the overall stock markets to head higher at least for the near term. Closer to home, we opine that the positive developments within the NETR, NIMP as well as the upcoming Budget 2024 may provide trading opportunities on the local exchange. Commodities wise, the Brent crude oil traded below the USD93/bbl level, while the CPO prices revisited above the RM3,800/MT level, before forming an inverted hammer below RM3,800.

Sector focus:  We have issued a 4Q23 strategy report today and we favour the construction, building material, RE, O&G, poultry, automotive, insurance and technology for the quarter in the anticipation of extended buying interest within the domestic such as the NETR, NIMP and mega projects to be dished out going forward. Also, we like high net cash and stable dividend yield stocks.

Stocks to watch:

Construction & Building material: KERJAYA, ULICORP
Consumer: AEONCR, TEOSENG
O &G: HIBISCS
Technology: GTRONIC, VS
Others: ANCOMNY, SLVEST

4Q23 Market Chat: Budget 2024 and Domestic Catalysts to Be Focused

• Most of the negatives in the global environment could have already priced in, while the China’s recovery and the US averting a shutdown should be a positive towards the stock market globally.
• Closer to home, we believe the recent positive developments from the NETR, NIMP, fresh proposal of KL-SG HSR should attract buying support from foreign funds. Also, the investors may focus on the upcoming Budget 2024. 
• Under this environment, we favour these sectors, namely the (i) Construction, (ii) Building Material, (iii) Renewables, (iv) O&G (v) Poultry, (vi) Automotive, (vii) Insurance and (viii) Technology. Besides, high net cash or high dividend yield will be appreciated.

Source: Bloomberg, M+ Online

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.