M+ Online Morning Market Buzz - 26 Oct 23

Dow Jones: 33,035.93 pts (-105.45pts, -0.32%)
⬆️ Resistance:  34600
⬇️ Support:  32300

FBM KLCI: 1,442.51 pts (+6.86pts, +0.48%)
⬆️ Resistance:  1480
⬇️ Support:  1410

HSI Index: 17,085.33 pts (+93.80pts, +0.55%)
⬆️ Resistance:  17900
⬇️ Support:  16600

Crude Palm Oil: RM3,697 (+RM18, +0.49%)
⬆️ Resistance:  3920
⬇️ Support:  3560

Brent Oil: $90.13 (+$2.06, +2.34%)
⬆️ Resistance:  95.70
⬇️ Support:  85.00

Gold: $1,979.72 (+$8.75, +0.44%)
⬆️ Resistance:  2040
⬇️ Support:  1910

Market update – 26 Oct 23

The FBM KLCI rebounded, snapping a 4-day losing streak, while the buying support continues to be observed within the small cap and lower liners. However, Wall Street reversed after the brief rebound move earlier this week following the earnings disappointment from Alphabet, coupled with the 10-year Treasury yield revisiting previous high. Also, as the investors pricing in higher-for-longer interest rate environment, it may dampen the demand for equities. Besides, the uncertainty in the Middle East may persist as Israel intensified its overnight bombing of southern Gaza, the Brent oil price spiked above USD90/bbl. Similarly, the CPO traded nearer towards RM3,700/MT.

Sector focus: We expect the selling pressure to pick up within the Technology sector following the sharp selldown on Wall Street. Besides, traders may position into the Energy sector following the spike in Brent oil prices amid prolong Middle East tension. Meanwhile, as the USD strengthen against MYR, investors could focus on the export-related industries such as gloves and furniture stocks. For defensive theme, we reckon investors to accumulate stocks within the Telco and Utilities sectors with solid net cash and stable dividend payout.

Stocks to watch

Construction: HSSEB, KERJAYA
O&G: DAYANG, PANTECH, VELESTO
Technology: INARI
Furniture: EVERGRN, JAYCORP
Automotive: PECCA
Property: KSL

Source: M+ Online

M+ Online Technical Trading Stocks - 26 Oct 23

Stock Name: PANTECH (5125)
Entry: Buy above RM0.885
Target: RM0.930 (5.1%), RM0.950 (7.3%)
Stop: RM0.855 (-3.4%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: JAYCORP (7152)
Entry: Buy above RM0.750
Target: RM0.800 (6.7%), RM0.825 (10.0%)
Stop: RM0.730 (-2.7%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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