Dow Jones: 26,642.59 pts (+556.79pts, +2.13%)
⬆ Resistance:  27300
⬇ Support:  25100

FBM KLCI: 1,598.75 pts (-7.68pts, -0.48%)
⬆ Resistance:  1650
⬇ Support:  1540

HSI Index: 25,477.89 pts (-294.23pts, -1.14%)
⬆ Resistance:  27000
⬇ Support:  24800

Crude Palm Oil: RM2,502 (+RM73, +3.01%)
⬆ Resistance:  2560
⬇ Support:  2320

Brent Oil: $42.90 (+$0.18, +0.42%)
⬆ Resistance:  44.40
⬇ Support:  40.50

Gold: $1,809.36 (+$6.60, +0.37%)
⬆ Resistance:  1860
⬇ Support:  1760

M+ Online Technical Focus - 15 Jul 20
Improving prospects & joining the healthcare fray

Trading Catalyst
• Vehicle sales will see gradual improvement backed by the Economic Recovery Plan (PENJANA) that implemented 100.0% sales tax exemption on CKD passenger vehicles and 50.0% on CBU from 15th June 2020 to 31st December 2020.
• PECCA is diversifying into the production of PPE products via CAPEX allocation of RM2.2m, funded through internally generated funds.
• Solid net cash position of RM91.0m, translating to net cash per share of RM0.48.
• Technically, price snapped a six-day selling streak and recovery above RM0.885 may propel share price higher to re-test RM0.96-RM1.05 with long term target at RM1.12. 

Technical View

(i) PECCA (S: RM0.80, R: RM0.96-1.05, LT TP:RM1.12, CL:RM0.795)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

3Q2020 – Market Chat – 3Q20 Strategy
T-H-K-S to Gloves Lifting the Market Sentiment

Consensus are expecting a slowdown in economic activities for 2020, but we believe the stimulus packages from several central banks would be able to cushion the downside risk and may translate to a potential recovery in 2021. 

For the local markets, we expect the trading interest to crowd around gloves or healthcare stocks. However, we believe some defensive picks under the:- 

(i)    Consumer
a.    LHI (S: RM0.87, R: RM0.69-0.80, CL: RM0.565)
b.    NOVA (S: RM0.69, R: RM0.765-0.83, CL: RM0.655)
c.    POHUAT (S: RM1.11, R: RM1.22-1.33, CL: RM1.05) 
(ii)    Healthcare-proxy 
a.    HEXZA (S: RM1.18, R: RM1.32-1.49, CL: RM1.10)
b.    TEKSENG (S: RM0.605, R: RM0.69-0.80, CL: RM0.565)
(iii)    Payment solutions
a.    REVENUE (S: RM1.22, R: RM1.35-1.45, CL: RM1.20)

should have decent reward to risk for trading opportunities.

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

Source: Bloomberg, M+ Online

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