M+ Online Morning Market Buzz - 16 Oct 23

Dow Jones: 33,670.29 pts (+39.15pts, +0.12%)
⬆️ Resistance:  34700
⬇️ Support:  32600

FBM KLCI: 1,444.14 pts (+0.32pts, +0.02%)
⬆️ Resistance:  1480
⬇️ Support:  1390

HSI Index: 17,813.45 pts (-424.76pts, -2.33%)
⬆️ Resistance:  18700
⬇️ Support:  17100

Crude Palm Oil: RM3,759 (+RM100, +2.73%)
⬆️ Resistance:  3820
⬇️ Support:  3450

Brent Oil: $90.89 (+$0.02, +0.02%)
⬆️ Resistance:  92.90
⬇️ Support:  83.50

Gold: $1,932.82 (+$63.92, +3.41%)
⬆️ Resistance:  1980
⬇️ Support:  1810

Market update – 16 Oct 23

The FBM KLCI closed higher for the sixth session prior to the Budget 2024 as investors were anticipating positive catalysts from the event. However, the US stock markets pulled back amid rising geopolitical tension offsetting the stronger-than-expected quarterly earnings from the banking heavyweights. Given the growing geopolitical uncertainty in the Middle East region, we believe the upside could be limited on the local front. Nevertheless, the traders may focus on the Budget 2024 which may provide trading catalysts at least for the near term. Commodities wise, the Brent crude oil surged strongly above USD90/bbl after the Middle East tension intensified, while the CPO closed above RM3,700/MT with the improved China demand.

Sector focus: Following the Budget 2024, we expect the traders to focus on the poultry stocks with the intention of removing the price ceiling for chicken and eggs. Meanwhile, the other beneficiaries include the construction, solar-related, building materials and utilities sectors. Also, with the surge in crude oil prices, the energy sectors will be traded more positively. 

Stocks to watch:

Automotive: BAUTO
Building material: MCEMENT, ULICORP
Renewables: CYPARK
O&G: DELEUM, OVH
Others: YTLPOWR
Financial: BIMB
Technology: ITMAX, MYEG

Source: M+ Online

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