M+ Online Morning Market Buzz - 20 Oct 23

Dow Jones: 33,414.17 pts (-250.91pts, -0.75%)
⬆️ Resistance: 34900
⬇️ Support: 32800

FBM KLCI: 1,442.66 pts (-3.88pts, -0.27%)
⬆️ Resistance: 1480
⬇️ Support: 1410

HSI Index: 17,295.89 pts (-436.63pts, -2.46%)
⬆️ Resistance: 18400
⬇️ Support: 17000

Crude Palm Oil: RM3,728 (-RM30, -0.80%)
⬆️ Resistance: 3920
⬇️ Support: 3550

Brent Oil: $92.38 (+$0.88, +0.96%)
⬆️ Resistance: 95.40
⬇️ Support: 84.60

Gold: $1,974.46 (+$26.91, +1.38%)
⬆️ Resistance: 2020
⬇️ Support: 1840

Market update – 20 Oct 23

The FBM KLCI was traded flat throughout the session, but the selling pressure was noticed amongst the small cap stocks, albeit with a mild bargain hunting activities noticed. With Jerome Powell remained hawkish in its statement, the US stock markets traded negatively coupled with the rising US Treasury yield, worsening geopolitical tension in the Middle East which resulted in a spike in Brent oil prices. Hence, with the more negative tone in the US stock markets overnight, we believe the overall market conditions on the local front may turn weaker, translating to a broad based selldown. Commodities wise, the Brent crude oil had a big intraday swing from USD86 to around USD93/bbl due to the geopolitical tension in the Middle East, while the CPO traded fell below RM3,800/MT.

Sector focus: Technology stocks may be the focus today as the sentiment was negative with the weaker results from Tesla. Meanwhile, investors could be looking at defensive sectors such as Telco, Utilities, REIT and Consumer in the near term. We favour stocks with high net cash or stable dividends above 6% yield. Besides, we think the Energy sector could trade higher on the back of firmer crude oil prices.

Stocks to watch:

Technology: MI, MIKROMB, SMETRIC, SYSTECH
O&G: DAYANG, HIBISCS
Consumer: APOLLO
Healthcare: KPJ

Source: M+ Online

M+ Online Technical Trading Stocks - 20 Oct 23

Stock Name: HIBISCS (5199)
Entry: Buy above RM2.830
Target: RM2.930 (3.5%), RM3.000 (6.0%)
Stop: RM2.750 (-2.8%)
Shariah: Yes
Technical: Consolidation breakout

Stock Name: APOLLO (6432)
Entry: Buy above RM5.100
Target: RM5.300 (3.9%), RM5.350 (4.9%)
Stop: RM4.960 (-2.7%)
Shariah: Yes
Technical: Impending flag-formation breakout

Source: Bloomberg, M+ Online

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