M+ Online Morning Market Buzz - 31 Oct 23

Dow Jones: 32,928.96 pts (+511.37pts, +1.58%)
⬆️ Resistance:  34000
⬇️ Support:  31700

FBM KLCI: 1,439.20 pts (-2.70pts, -0.19%)
⬆️ Resistance:  1480
⬇️ Support:  1410

HSI Index: 17,406.36 pts (+7.63pts, +0.04%)
⬆️ Resistance:  17900
⬇️ Support:  16600

Crude Palm Oil: RM3,694 (-RM43, -1.15%)
⬆️ Resistance:  3890
⬇️ Support:  3560

Brent Oil: $87.45 (-$3.03, -3.35%)
⬆️ Resistance:  92.60
⬇️ Support:  85.00

Gold: $1,996.10 (-$10.27, -0.51%)
⬆️ Resistance:  2050
⬇️ Support:  1920

Market update – 31 Oct 23

Tracking the softer closing on Wall Street last Friday, the FBM KLCI ended softer for the session amid the mixed regional markets’ sentiment. However, the US stock markets have gained strongly after a solid start for the corporate earnings and bargain hunting activities emerged. Given the 10-year US Treasury yield was below the 5% mark, the overall buying support on the equities remains strong. However, we expect the traders to turn cautious nearer to the 2-day FOMC meeting which will be held on 31-Oct-to-1-Nov. A few important data that traders may focus on will the (i) China Manufacturing PMI, (ii) US ISM Manufacturing PMI, and (iii) jobs data. Despite the widening of the geopolitical tension, the Brent oil prices have eased more than 3% for the session towards USD87.45.

Sector focus: Given the strong rebound on Wall Street, we expect buying support to spillover towards the local exchange within the Technology stocks. Also, we believe the strong earnings from McDonald’s could give rise towards buying support within the Consumer sector at least for the near term. Besides, we think poultry-related stocks will get a boost once the details on the floating price are announced.

Stocks to watch:

Consumer: KTC
O&G: T7GLOBAL
Financial: MNRB, RCECAP
Others: ANCOMNY, RGB
Construction: EPICON, HSSEB

Source: M+ Online

M+ Online Technical Trading Stocks - 31 Oct 23

Stock Name: RGB (0037)
Entry: Buy above RM0.315
Target: RM0.330 (4.8%), RM0.350 (11.1%)
Stop: RM0.305 (-3.2%)
Shariah: No
Technical: Breakout-pullback-continuation

Stock Name: RCECAP (9296)
Entry: Buy above RM2.510
Target: RM2.600 (3.6%), RM2.650 (5.6%)
Stop: RM2.450 (-2.4%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

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