M+ Online Morning Market Buzz - 8Sep21

Dow Jones: 35,100.00 pts (-269.09pts, -0.76%)
⬆ Resistance:  36200
⬇ Support:  34400

FBM KLCI: 1,583.48 pts (+1.89pts, +0.12%)
⬆ Resistance:  1640
⬇ Support:  1550

HSI Index: 26,353.63 pts (+190.00pts, +0.73%)
⬆ Resistance:  27000
⬇ Support:  25200

Crude Palm Oil: RM4,390 (+RM59, +1.36%)
⬆ Resistance:  4490
⬇ Support:  4070

Brent Oil: $71.69 (-$0.53, -0.73%)
⬆ Resistance:  75.20
⬇ Support:  69.10

Gold: $1,794.36 (-$28.93, -1.59%)
⬆ Resistance:  1880
⬇ Support:  1760

M+ Online Technical Focus - 8Sep21
TCS Group Holdings Bhd: Better days ahead

Trading Catalyst
• Principally involved in the construction of building and civil works with notable clients such as Sime Darby Property Bhd, Mah Sing Group Bhd, IJM Corporation Bhd, SP Setia Bhd, Tropicana Corporation Bhd and Worldwide Holdings Bhd.
• Outstanding orderbook of RM1.57bn, representing an orderbook-to-cover ratio of 6.5x against FY20 revenue of RM242.6m to provide earnings visibility over the next 3 years. 
• Recovery in the cards on works resumption in the construction sector that was largely affected by works disruption from MCO 3.0 and FMCO.
• Technically, price has formed a short-term consolidation breakout above RM0.46, targeting the next resistances at RM0.495-0.515 with long term target set at RM0.56.

Technical View

(i) TCS (S: RM0.445, R: RM0.495-0.515, LT TP: RM0.56, CL: RM0.44)

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

Source: Bloomberg, M+ Online

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