M+ Online Morning Market Buzz - 22 Oct 21

Dow Jones: 35,603.08 pts (-6.26pts, -0.02%)
⬆ Resistance:  36400
⬇ Support:  34400

FBM KLCI: 1,591.62 pts (-14.70pts, -0.92%)
⬆ Resistance:  1650
⬇ Support:  1560

HSI Index: 26,017.53 pts (-118.49pts, -0.45%)
⬆ Resistance:  26800
⬇ Support:  24500

Crude Palm Oil: RM4,968 (-RM103, -2.03%)
⬆ Resistance:  5330
⬇ Support:  4760

Brent Oil: $84.61 (-$1.21, -1.41%)
⬆ Resistance:  87.90
⬇ Support:  81.70

Gold: $1,782.90 (+$0.82, +0.05%)
⬆ Resistance:  1840
⬇ Support:  1730

M+ Online Technical Focus - 22 Oct 21
Leong Hup International Bhd: Proxy to recovery theme play

Trading Catalyst
• One of the largest fully integrated producers of poultry, eggs and livestock feed in Southeast Asia with strong presence in Malaysia, Indonesia, Vietnam and Singapore.
• Committed to expand the Malaysia, Philippines and Vietnam operations via additional capacities and infrastructures, whilst targets 160 Baker’s Cottage outlets by end-FY21 and 200 outlets by end-FY22.
• Softening raw material prices since May 2021 augurs well for LHI’s margins and re-opening of economic activities also may improve demand.
• Technically, traders may anticipate for a potential breakout above the RM0.69 resistance level to target the next resistances at RM0.715-0.775, with long term target at RM0.80.

Technical View

(i) LHI (S: RM0.645, R: RM0.715-0.755, LT TP: RM0.80, CL: RM0.64)

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

Source: Bloomberg, M+ Online

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