Market update – 24 Oct 23

The local exchange remained challenging with the selling pressure extending for the fourth session, but the FBM KLCI was still supported above the 1,430. Given the elevated US Treasury yields, coupled with the ongoing geopolitical tension in the Middle East, Wall Street ended mostly lower. We believe the traders will stay cautious and shift their focus on this eventful earnings week where the mega cap corporations such as Microsoft, Alphabet, Meta and Amazon will be announcing their results. Should these results beat estimates, buying support may emerge and put a pause to the recent selling tone. Commodities wise, the Brent crude oil declined further below USD91/bbl, while the CPO traded below RM3,800/MT.

Sector focus: We think the buying interest may emerge within the Technology sector, taking cue from Nasdaq overnight; rebounding for the first time after 4 losing streaks ahead of mega cap’s earnings. Also, we expect follow-through buying support within the Construction and Property sectors as HSSEB and IOIPG have rebounded significantly for the session.

Stocks to watch:

Construction: HSSEB, KERJAYA
Automotive: BAUTO, PECCA, UMW
Property: IOIPG
Consumer: PWF
Technology: MI
Others: TAS

M+ Online Morning Market Buzz - 24 Oct 23

Dow Jones: 32,936.41 pts (-190.87pts, -0.58%)
⬆ Resistance: 34900
⬇ Support: 32300

FBM KLCI: 1,438.12 pts (-2.92pts, -0.20%)
⬆ Resistance: 1480
⬇ Support: 1410

HSI Index: 17,172.13 pts (-123.76pts, -0.72%)
⬆ Resistance: 18200
⬇ Support: 16800

Crude Palm Oil: RM3,738 (-RM15, -0.40%)
⬆ Resistance: 3920
⬇ Support: 3640

Brent Oil: $89.83 (-$2.33, -2.53%)
⬆ Resistance: 95.70
⬇ Support: 87.20

Gold: $1,972.85 (-$8.55, -0.43%)
⬆ Resistance: 2040
⬇ Support: 1880

Source: Bloomberg, M+ Online

M+ Online Technical Trading Stocks - 24 Oct 23

Stock Name: PWF (7134)
Entry: Buy above RM0.670
Target: RM0.700 (4.5%), RM0.730 (9.0%)
Stop: RM0.650 (-3.0%)
Shariah: Yes
Technical: Impending flag-formation breakout

Stock Name: BAUTO (5248)
Entry: Buy above RM2.490
Target: RM2.580 (3.6%), RM2.600 (4.4%)
Stop: RM2.450 (-1.6%)
Shariah: Yes
Technical: Breakout-pullback-continuation

Source: Bloomberg, M+ Online

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