M+ Online Morning Market Buzz - 17 Oct 23

Dow Jones: 33,984.54 pts (+314.25pts, +0.93%)
⬆️ Resistance:  34800
⬇️ Support:  32800

FBM KLCI: 1,438.96 pts (-5.18pts, -0.36%)
⬆️ Resistance:  1480
⬇️ Support:  1400

HSI Index: 17,640.36 pts (-173.09pts, -0.97%)
⬆️ Resistance:  18700
⬇️ Support:  17300

Crude Palm Oil: RM3,781 (+RM1, +0.03%)
⬆️ Resistance:  3870
⬇️ Support:  3450

Brent Oil: $89.65 (-$1.24, -1.36%)
⬆️ Resistance:  93.30
⬇️ Support:  83.50

Gold: $1,920.20 (-$12.62, -0.65%)
⬆️ Resistance:  1980
⬇️ Support:  1820

Market update – 17 Oct 23

The FBM KLCI ended lower after digesting the neutral Budget 2024 given most of the things were within expectation except for the hike in SST to 8%, which have impacted some of the consumer stocks. Meanwhile, Wall Street rallied as investors were trading more positively heading into the first week of the 3rd quarter earnings season, despite the rising geopolitical tension. Hence, given the positive trading sentiment on Wall Street, we believe the buying interest may emerge on the local front, focusing on the details of the Budget 2024 as well as the NETR and NIMP blueprints. Commodities wise, the Brent crude oil maintained above the USD90/bbl amid the ongoing geopolitical tension, while the CPO headed higher towards RM3,800/MT with the improved China and ahead of Divali festival.

Sector focus: Given the positive sentiment from Wall Street, we think the focus may shift towards the technology stocks. Meanwhile, the Brent oil price maintaining above the USD90 mark may provide trading impetus for the Energy stocks. We favour the solar-related as well as the automotive sector as EVs and Renewable Energy were some of the key focuses in the Budget 2024.

Stocks to watch:

Technology: ATECH MYEG
O&G: DAYANG TAS
Financial: MNRB
Consumer: APOLLO 
Building material: ULICORP
Automotive: BAUTO, PECCA
Others: ANCOMNY

Source: M+ Online

M+ Online Technical Trading Stocks - 17 Oct 23

Stock Name: APOLLO (6432)
Entry: Buy above RM5.500
Target: RM5.800 (5.5%), RM6.000 (9.1%)
Stop: RM5.350 (-2.7%)
Shariah: Yes
Technical: Impending flag-formation breakout

Stock Name: MNRB (6459)
Entry: Buy above RM1.150
Target: RM1.200 (4.3%), RM1.230 (7.0%)
Stop: RM1.120 (-2.6%)
Shariah: No
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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