KLCI: 1,774.95 (+6.67 pts)
DOW: 20,894.83 (+89.99 pts)
MSCI ASIA Pac (MXAP): 152.30 (+1.51 pts)
FCPO: RM2,662 / MT (+27)
BRENT: US$53.87 / bbl (+0.26)
USD: 4.305 (-0.017 pts)
SGD: 3.106 (-0.002 pts)
EUR: 4.815 (-0.003 pts)
GBP: 5.593 (-0.026 pts)
US: 10-yr yield (+0.02 to 2.25%)
BNM: 10-yr yield (+0.01 to 3.87%)

Cut off time: 7.45am (23 May 2017)

US: Although investors were concerned about the US political turmoil, focus has turned to the US$110b weapon deal between US and Saudi Arabia, which has seen buying interest emerged among defense stocks.

Asia: Tracking the recovery in US markets, Asian equities were mostly higher led by Hang Seng Index with an increase of 0.86%, while Nikkei 225 added 0.45%. Meanwhile, Kospi Index rose 0.68% despite a missile test by North Korea over the weekend.

Bursa Malaysia: On the local front, the buying sentiments were subdued throughout the trading session before ending at an intraday high of 1,774.95 pts (+0.38%) led by Petronas-related index heavyweights on the back of a recovery in oil price ahead of OPEC meeting. Market breadth stayed positive with gainers led losers by a ratio of 5-to-4.

Outlook: We see signs of relief buying after the political scandal in US and this may support the Dow over the immediate term to revisit the all-time-high of 21,178. Also, energy shares are likely to focus on the back of slight recovery on crude oil prices ahead of the OPEC meeting. Meanwhile, buying flow on the local bourse should remain steady, tracking the positive recovery on Wall Street, coupled with the steadier crude oil prices. We opine that O&G sector could see some revival in trading interest following softer focus over the past weeks.

STOCK ON RADAR
Trading Buy: COMFORT
Period: 4 weeks
Last px: 0.72
Upside: 0.77/0.81/0.94
Downside: 0.705/0.69
Cut loss: 0.675
Trading catalyst: Comfort Gloves Berhad (CGB) offers wide range of quality gloves for the export markets. CGB is planning to install additional 8 production lines in FY18 to total production lines of 48, which will boost their capacity by at least 20%. Also, we opine that the management would be able to pass on the cost in the upcoming results with a potential revision in ASP, eventually showing normalisation in GP margins after a mild GP margin squeeze of 2% in the 4QFY16 results on the back of higher raw material prices.

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