M+ Online Morning Market Buzz – 1 Aug 22

Dow Jones: 32,845.13 pts (+315.50pts, +0.97%)
⬆️ Resistance:  33600
⬇️ Support:  31100

FBM KLCI: 1,492.23 pts (+1.03pts, +0.07%)
⬆️ Resistance:  1530
⬇️ Support:  1430

HSI Index: 20,156.51 pts (-466.17pts, -2.26%)
⬆️ Resistance:  21400
⬇️ Support:  19700

Crude Palm Oil: RM4,289 (+RM332, +8.39%)
⬆️ Resistance:  4400
⬇️ Support:  3550

Brent Oil: $103.97 (+$2.14, +2.10%)
⬆️ Resistance:  112.90
⬇️ Support:  99.70

Gold: $1,765.94 (+$21.65, +1.26%)
⬆️ Resistance:  1810
⬇️ Support:  1680

M+ Online Technical Focus – 1 Aug 22
YBS International Bhd: On manufacturing expansion drive

Trading Catalyst
• Specialises in high-precision tools, metal, plastic components and sub-component assembly.
• Embarking into expansion of their manufacturing plant which may able to double their annual revenue to RM200.0m, upon completion in FY24.
• Aiming to produce higher-margin products and solutions, especially in the telecommunications sector and is developing electrical connectors for the battery power management system in electric vehicles.
• Technically, price has formed a triangle formation breakout above RM0.555, targeting the next resistances at RM0.595-0.63 with long term target set at RM0.67.

Technical View

(i) YBS (S: RM0.485, R: RM0.595-0.63, LT TP: RM0.67, CL: RM0.48)

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

Economic Releases For The Week (1/8/2022-5/8/2022):

1/8/2022
JP - Japan's Jibun Bank Manufacturing PMI, 8.30AM
MY - Malaysia's S&P Global Manufacturing PMI, 8.30AM
CN - China's Caixin Manufacturing PMI, 9.45AM
EU - Eurozone's S&P Global Manufacturing PMI, 4.00PM
UK - United Kingdom's S&P Global/CIPS Manufacturing PMI, 4.30PM
EU - Eurozone's Unemployment Rate, 5.00PM
US - United States' S&P Global Manufacturing PMI, 9.45PM
US - United States' ISM Manufacturing PMI, 10.00PM

3/8/2022
JP - Japan's Jibun Bank Services PMI, 8.30AM
JP - Japan's Jibun Bank Composite PMI, 8.30AM
CN - China's Caixin Services PMI, 9.45AM
CN - China's Caixin Composite PMI, 9.45AM
EU - Eurozone's S&P Global Services PMI, 4.00PM
EU - Eurozone's S&P Global Composite PMI, 4.00PM
UK - United Kingdom's S&P Global Services PMI, 4.30PM
UK - United Kingdom's S&P Global Composite PMI, 4.30PM
EU - Eurozone's Retail Sales, 5.00PM
EU - Eurozone's Producer Price Index, 5.00PM
US - United States' S&P Global Services PMI, 9.45PM
US - United States' S&P Global Composite PMI, 9.45PM
US - United States' ISM Non-Manufacturing PMI, 10.00PM
US - United States' Factory Orders, 10.00PM

4/8/2022
UK - United Kingdom's Bank of England's Interest Rate Decision, 7.00PM

5/8/2022
US - United States' Unemployment Rate, 8.30PM

Market update: The FBM KLCI eked out marginal gains on Friday, extending its gains for a third straight session supported by persistent buying from foreign funds. We believe the market undertone will improve as investors may expect a slower pace of interest rate hikes in the US moving forward. Nevertheless, inflation is likely to remain high as crude oil price is still elevated above the USD103 per barrel mark on the back of tight supply situation. Attention may turn to OPEC+ meeting on the 3rd of August 2022. Meanwhile, the CPO price surged more than 8.0%, trading above RM4,200. 

Sector focus: We remained a positive stance on the technology sector amid the extended uptrend movement in Nasdaq as well as the anticipation of better earnings result for our local tech stocks into the reporting month. The plantation sector may gain traction amid a jump in CPO prices, but the O&G stocks may take a mild breather as crude oil price is on a mild retracement.

Stocks to watch: 

Technology & Telco: DNEX, OPCOM, REVENUE, SEDANIA, THETA, VS, YBS
Finance: ABMB, BIMB, MAYBANK
Plantation: CEPAT, HSPLANT, JTIASA, TSH 
O&G: ARMADA, DAYANG, YINSON
Consumer & Media: MEDIA, PADINI
Healthcare: DPHARMA, PHARMA
Property: ECOWLD, SIMEPROP
Others: ANNJOO, AXREIT, CFM, EVERGRN 

Source: M+ Online

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