M+ Online Morning Market Buzz - 19 Oct 23

Dow Jones: 33,665.08 pts (-332.57pts, -0.98%)
⬆️ Resistance:  34900
⬇️ Support:  32800

FBM KLCI: 1,446.54 pts (+2.41pts, +0.17%)
⬆️ Resistance:  1480
⬇️ Support:  1410

HSI Index: 17,732.52 pts (-40.82pts, -0.23%)
⬆️ Resistance:  18700
⬇️ Support:  17300

Crude Palm Oil: RM3,796 (-RM14, -0.37%)
⬆️ Resistance:  3920
⬇️ Support:  3470

Brent Oil: $91.50 (+$1.60, +1.78%)
⬆️ Resistance:  94.90
⬇️ Support:  83.50

Gold: $1,947.55 (+$24.37, +1.27%)
⬆️ Resistance:  2010
⬇️ Support:  1840

Market update – 19 Oct 23

The FBM KLCI traded higher, but the small cap market conditions were traded negatively following the significant profit taking activities. Meanwhile, Wall Street closed weaker with the ongoing Middle East tensions, coupled with the spike in US Treasury yields. Post US markets, sentiment was affected by Tesla’s weaker-than-expected results. Hence, we believe the stocks on the local front may track the negative trading environment on Wall Street overnight and further profit taking mood may persist. Commodities wise, the Brent crude oil was traded near USD93 before ending around USD91/bbl level amid the ongoing geopolitical tension, while the CPO traded around the RM3,800/MT.

Sector focus: Given the weaker market conditions from Wall Street coupled with the softer result from Tesla, the technology sector may take a beating today. We expect that the investors may shift their risk appetite towards defensive sector such as the Telco and Utilities, while REIT may turn attractive at least for the near term. Besides, the Energy sector may stay relevant under the firmer crude oil environment.

Stocks to watch:

Property: SCIENTX
Automotive: BAUTO, PECCA
Consumer: PWF
Building material: SCGBHD
Construction: IJM
O&G: SEALINK 
Others: COMCORP, FSBM

Source: M+ Online

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