M+ Online Morning Market Buzz - 12 Jul 22

Dow Jones: 31,173.84 pts (-164.31pts, -0.52%)
⬆️ Resistance:  32200
⬇️ Support:  29800

FBM KLCI: 1,425.79 pts (+7.10pts, +0.50%)
⬆️ Resistance:  1480
⬇️ Support:  1400

HSI Index: 21,124.20 pts (-601.58pts, -2.77%)
⬆️ Resistance:  22700
⬇️ Support:  20600

Crude Palm Oil: RM4,157 (+RM17, +0.41%)
⬆️ Resistance:  4530
⬇️ Support:  3670

Brent Oil: $107.10 (+$0.08, +0.07%)
⬆️ Resistance:  117.10
⬇️ Support:  96.60

Gold: $1,733.96 (-$8.52, -0.49%)
⬆️ Resistance:  1850
⬇️ Support:  1700

M+ Online Technical Focus - 12 Jul 22
Kawan Food Bhd: Expansion in the cards

Trading Catalyst
• One of Malaysia’s leading exporter and largest manufacturer of frozen Asian food delicacies worldwide that operates 3 factories, of which products are exported to 37 countries globally that are sold in local groceries and supermarkets.
• Rising demand for frozen food amid the changes in society living environment and adoption of work from home policy remains a boon for KAWAN.
• Purchasing 5 parcels of land measuring 7.1-ac in Shah Alam, Selangor to build a second manufacturing facility as part of expansion plans.
• Technically, price has formed a consolidation breakout above RM1.69 and may target the next resistances at RM1.77-1.82 with long term target at RM1.93.

Technical View

(i) KAWAN (S: RM1.64, R: RM1.77-1.82, LT TP: RM1.93, CL: RM1.63)

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

Economic Releases For The Week (11/7/2022-15/7/2022):

11/7/2022
JP - Japan's Machinery Orders, 7.50AM

12/7/2022
JP - Japan's Producer Price Index, 7.50AM
EU - Eurozone's ZEW Economic Sentiment Index, 5.00PM
US - United States' Consumer Inflation Expectations, 11.00PM

13/7/2022
UK - United Kingdom's Manufacturing Production, 2.00PM
UK - United Kingdom's Industrial Production, 2.00PM
EU - Eurozone's Industrial Production, 5.00PM
US - United States' Inflation Rate, 8.30PM

14/7/2022
JP - Japan's Industrial Production, 12.30PM
US - United States' Producer Price Index, 8.30PM

15/7/2022
CN - China's 2Q22 GDP Growth Rate, 10.00AM
CN - China's Industrial Production, 10.00AM
CN - China's Retail Sales, 10.00AM
CN - China's Unemployment Rate, 10.00AM
US - United States' Retail Sales, 8.30PM
US - United States' Industrial Production, 9.15PM
US - United States' Manufacturing Production, 9.15PM

Market update: The FBM KLCI rebounded on Friday following the back-to-back losing sessions, led by selected banking and industrial products heavyweights; rising regional markets added to the positive sentiment. Nevertheless, we deem the rebound may be short-lived amid rebound in Covid-19 cases in Malaysia, reintroduction of lockdowns in China, as well profit taking activities on Wall Street overnight. On the commodity markets, crude oil price hovered around USD107 per barrel mark, while the CPO price moderated further to RM4,150. 

Sector focus: We believe the banking sector may be in focus, supported by interest rate upcycle environment. Meanwhile, traders may look at the healthcare sector for short-term trade amid growing Covid-19 cases. Also, we noticed buying interest has been seen within the construction and building material segment. On the flip side, we may anticipate technology stocks to pullback as Nasdaq reversed its gains yesterday.

Stocks to watch: 

Finance: AMBANK, PPJACK
Consumer: F&N, FFB, FIAMMA, LAYHONG, PWROOT
Construction & Building materials: CHINWEL, EMETALL, GAMUDA
Telco & Technology: DSONIC, INARI, MAXIS, PENTA, TM
Chemicals: HEXTAR, TEXCHEM
Others: ECOMATE, GASMSIA, MGRC, SWKPLNT

Source: M+ Online

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