M+ Online Morning Market Buzz - 27 Oct 23

Dow Jones: 32,784.30 pts (-251.63pts, -0.76%)
⬆️ Resistance: 34100
⬇️ Support: 32100

FBM KLCI: 1,440.60 pts (-1.91pts, -0.13%)
⬆️ Resistance: 1480
⬇️ Support: 1410

HSI Index: 17,044.61 pts (-40.72pts, -0.24%)
⬆️ Resistance: 17900
⬇️ Support: 16600

Crude Palm Oil: RM3,742 (-RM20, -0.53%)
⬆️ Resistance: 3870
⬇️ Support: 3560

Brent Oil: $87.93 (-$2.20, -2.44%)
⬆️ Resistance: 95.70
⬇️ Support: 85.00

Gold: $1,984.71 (+$4.99, +0.25%)
⬆️ Resistance: 2040
⬇️ Support: 1920

Market update – 27 Oct 23

The FBM KLCI ended softer in tandem with the weaker regional sentiment. Also, weaker-than-expected results from the US corporations were contributing to the softer Wall Street movements. We expect the sentiment could stay negative at this juncture given the stronger GDP data, where the investors may price in a higher-for-longer interest rate environment, which may dampen the appetite for stock markets. Likely, the selling may spillover to the local front, limiting the upside potential on Bursa exchange. On the oil market, the Energy Information Administration reported that the US oil inventories rose by 1.4m barrels last week, suggesting lighter-than-expected demand, and the Brent oil price fell below USD88/bbl.

Sector focus: Given the weaker trading tone abroad, we believe it may exert pressure within the Technology sector. Meanwhile, we think the USD strengthening against the Malaysian ringgit will provide upside potential for the export-related segment, where gloves, and furniture stocks may benefit in the near term. We reckon stocks with defensive characteristics within the Telco and Utilities sectors, coupled with solid net cash position and stable dividend payout will be decent for long term investors to accumulate.

Stocks to watch

Gaming-related: RGB
Technology: EG
Solar: CYPARK
Finance: PPJACK
Utilities: YTLPOWR
Construction: HSSEB, IJM
O&G: DAYANG, PANTECH, VELESTO

Source: M+ Online

M+ Online Technical Trading Stocks - 27 Oct 23

Stock Name: RGB (0037)
Entry: Buy above RM0.310
Target: RM0.335 (8.1%), RM0.350 (12.9%)
Stop: RM0.295 (-4.8%)
Shariah: No
Technical: Ascending triangle

Stock Name: CYPARK (5184)
Entry: Buy above RM0.930
Target: RM0.980 (5.4%), RM1.000 (7.5%)
Stop: RM0.895 (-3.8%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+ Online

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