M+ Online Morning Market Buzz - 6 Nov 23

Dow Jones: 34,061.32 pts (+222.24pts, +0.66%)
⬆️ Resistance: 34900
⬇️ Support: 31900

FBM KLCI: 1,449.93 pts (+10.16pts, +0.71%)
⬆️ Resistance: 1490
⬇️ Support: 1410

HSI Index: 17,664.12 pts (+433.53pts, +2.52%)
⬆️ Resistance: 18100
⬇️ Support: 16700

Crude Palm Oil: RM3,768 (-RM16, -0.42%)
⬆️ Resistance: 3890
⬇️ Support: 3590

Brent Oil: $84.89 (-$1.96, -2.26%)
⬆️ Resistance: 92.00
⬇️ Support: 82.90

Gold: $1,992.65 (+$3.25, +0.16%)
⬆️ Resistance: 2050
⬇️ Support: 1940

Market update – 6 Nov 23

Finally, the FBM KLCI has experienced a breakout from the narrow range, in tandem with the sentiment from the regional benchmark indices, coupled with the positive performance on Wall Street overnight. Given the 10-year US Treasury yield is off the highs of 5% following the softer-than expected jobs report, the investors should be pricing in lower probability of a rate hike by the Fed in December. Also, we expect the buying interest to spillover to stock on the local front as we are heading into the financial reporting season. With the softer expectation of a rate hike, the ringgit has strengthened further towards RM4.726 against the USD. On the commodity markets, the Brent oil prices eased more than 2% amid fading geopolitical tension, while the FCPO traded above RM3,700/tonne.

Sector focus: We believe the positive Wall Street’s move may spillover towards our Technology sector as Apple traded off the lows last Friday. Meanwhile, we are selectively bullish on the O&G stocks despite the pullback in oil price. Also, we like the Construction, Property and Building Material sectors as well as the Consumer sector with the anticipation of stronger quarterly results heading into the financial reporting season.

Stocks to watch:

O&G: DAYANG, WASCO
Technology: EG, SFPTECH
Property: IOIPG, KSL
Consumer: TEOSENG
Building material: MCEMENT, ULICORP
Logistics: SWIFT

Source: M+ Online

M+ Online Technical Trading Stocks - 6 Nov 23

Stock Name: SFPTECH (0251)
Entry: Buy above RM0.975
Target: RM1.020 (4.6%), RM1.060 (8.7%)
Stop: RM0.940 (-3.6%)
Shariah: Yes
Technical: Monitor for breakout

Stock Name: EG (8907)
Entry: Buy above RM1.480
Target: RM1.550 (4.7%), RM1.570 (6.1%)
Stop: RM1.430 (-3.4%)
Shariah: Yes
Technical: Flag-formation breakout

Source: Bloomberg, M+ Online

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