M+ Online Morning Market Buzz - 5 Oct 23

Dow Jones: 33,129.55 pts (+127.17pts, +0.39%)
⬆️ Resistance: 34600
⬇️ Support: 32300

FBM KLCI: 1,415.84 pts (-4.17pts, -0.29%)
⬆️ Resistance: 1470
⬇️ Support: 1390

HSI Index: 17,195.84 pts (-135.38pts, -0.78%)
⬆️ Resistance: 18300
⬇️ Support: 16800

Crude Palm Oil: RM3,701 (-RM14, -0.38%)
⬆️ Resistance: 3930
⬇️ Support: 3620

Brent Oil: $85.81 (-$5.11, -5.62%)
⬆️ Resistance: 99.70
⬇️ Support: 84.10

Gold: $1,821.36 (-$1.66, -0.09%)
⬆️ Resistance: 1920
⬇️ Support: 1780

Market update – 5 Oct 23

The FBM KLCI has declined for another session, but we believe it is currently oversold and may be due for a rebound. Given the Wall Street rebounded overnight on the back of easing Treasury yields after the US Sep ADP Employment came in weaker than expectations. Hence, we expect the buying interest to spillover to stocks on the local front. Investors may still position ahead of the Budget 2024 which will be held next Friday. Commodities wise, the Brent crude oil plunged nearly 6%, closing below the USD86/bbl level amid recession fear amid elevated bond yield environment, while the CPO prices traded around RM3,700/MT level.

Sector focus: With Wall Street turning more positively overnight, we believe the buying support may spillover to our local exchange, specifically within the Technology sector. However, the Energy sector will be under pressure amid a plunge in Brent oil prices. Nevertheless, traders should focus on domestic driven catalysts in the near term from the NETR, NIMP as well as the upcoming Budget 2024. We opine that the trading activities may emerge within the Construction, Building Materials and Property sectors.

Stocks to watch:

Building material: HIAPTEK, PWRWELL
Financial: RCECAP
Telco: TIMECOM
Construction: HSSEB, MRCB
Technology: AIMFLEX, MI
Renewables: SLVEST
Others: HEXTAR

Source: M+ Online

M+ Online Technical Trading Stocks - 5 Oct 23

Stock Name: SLVEST (0215)
Entry: Buy above RM1.300
Target: RM1.360 (4.6%), RM1.420 (9.2%)
Stop: RM1.260 (-3.1%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: HSSEB (0185)
Entry: Buy above RM0.795
Target: RM0.825 (3.8%), RM0.850 (6.9%)
Stop: RM0.775 (-2.5%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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