Dow Jones: 27,931.02 pts (+34.30pts, +0.12%)
⬆ Resistance:  28800
⬇ Support:  27000

FBM KLCI: 1,564.59 pts (-11.83pts, -0.75%)
⬆ Resistance:  1620
⬇ Support:  1510

HSI Index: 25,183.01 pts (-47.66pts, -0.19%)
⬆ Resistance:  26000
⬇ Support:  23800

Crude Palm Oil: RM2,647 (-RM23, -0.86%)
⬆ Resistance:  2840
⬇ Support:  2560

Brent Oil: $44.80 (-$0.16, -0.36%)
⬆ Resistance:  46.80
⬇ Support:  43.50

Gold: $1,945.12 (-$8.59, -0.44%)
⬆ Resistance:  2100
⬇ Support:  1830

M+ Online Technical Focus - 17 Aug 20
SKP Resources Bhd: On the mend

Trading Catalyst
• One of the largest electronic manufacturing services (EMS) providers on Malaysia with over 40 years of experience in the industry.
• Key clients include multinational companies like Sharp, Flextronics, Dyson, Sony, Fujitsu and Panasonic.
• At RM1.44, price is trading at prospective PE of 14.5x and 12.1x for FY21f and FY22f respectively which is below the 2Y historical average at 16.8x, suggesting some upsides in our view.
• Technically, a flag-formation breakout above RM1.47 may power price to re-test RM1.59-RM1.67 with long term target at RM1.80.

Technical View

(i) SKPRES (S: RM1.36, R: RM1.59-1.67, LT TP:RM1.80, CL:RM1.35)

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

Source: Bloomberg, M+ Online

Economic Releases For The Week (17/8/2020-21/8/2020):

17/8/2020
JP - Japan's Industrial Production, 12.30PM

19/8/2020
JP - Japan's Machinery Orders, 7.50AM
UK - United Kingdom's Inflation Rate, 4.30PM
EU - Eurozone's Inflation Rate, 5.00PM

21/8/2020
JP - Japan's Inflation Rate, 7.30AM
MY - Malaysia's Inflation Rate, 12.00PM
UK - United Kingdom's Retail Sales, 4.30PM
US - United States' Existing Home Sales, 10.00PM

Source: Trading Economics, M+ Online

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