M+ Online Morning Market Buzz - 12 Oct 23

Dow Jones: 33,804.87 pts (+65.57pts, +0.19%)
⬆️ Resistance:  34600
⬇️ Support:  32200

FBM KLCI: 1,436.49 pts (+1.32pts, +0.09%)
⬆️ Resistance:  1470
⬇️ Support:  1390

HSI Index: 17,893.10 pts (+228.37pts, +1.29%)
⬆️ Resistance:  18400
⬇️ Support:  16900

Crude Palm Oil: RM3,551 (RM0, 0.00%)
⬆️ Resistance:  3790
⬇️ Support:  3450

Brent Oil: $85.82 (-$1.83, -2.09%)
⬆️ Resistance:  90.80
⬇️ Support:  81.80

Gold: $1,874.36 (+$13.96, +0.75%)
⬆️ Resistance:  1920
⬇️ Support:  1780

Market update – 12 Oct 23

The FBM KLCI ended marginally higher, in tandem with regional benchmark indices as Beijing is preparing a new stimulus to support the economy. Meanwhile, Wall Street reversed its earlier losses after digesting the Fed’s September meeting minutes, coupled with the US Treasury yield declining. Thus, with the positive sentiment overall in the global stock markets, we expect the buying support may persist on the local front, revolving around the ideas and catalysts in the upcoming Budget 2024, at least for the near term. Commodities wise, the Brent crude oil fell more than 2% below USD86/bbl level, while the CPO closed around RM3,550/MT.

Sector focus: Under the Budget 2024, we believe investors will be focusing on the construction and building materials, while the property sector could be boosted by the Johor-related newsflow. Meanwhile, the news on the implementation of the Automotive High Tech Valley (AHTV) spearheaded by Geely with DRBHCOM may provide a trading catalyst within the automotive sector. We like the renewable energy sector as the NETR blueprint will be boosting the appetite for renewables going forward. 

Stocks to watch:

Technology: MI
Property: ECOWLD, IOIPG
Construction: SUNCON
Automotive: PECCA
Consumer: KTC, PARKSON
Financial: BIMB
Others: MIKROMB, UNIQUE

Source: M+ Online

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