M+ Online Morning Market Buzz - 15 Aug 22

Dow Jones: 33,761.05 pts (+424.38pts, +1.27%)
⬆️ Resistance:  34500
⬇️ Support:  32100

FBM KLCI: 1,506.19 pts (+0.63pts, +0.04%)
⬆️ Resistance:  1550
⬇️ Support:  1470

HSI Index: 20,175.62 pts (+93.19pts, +0.46%)
⬆️ Resistance:  20700
⬇️ Support:  19100

Crude Palm Oil: RM4,407 (+RM143, +3.35%)
⬆️ Resistance:  4590
⬇️ Support:  3900

Brent Oil: $98.15 (-$1.45, -1.46%)
⬆️ Resistance:  102.40
⬇️ Support:  91.20

Gold: $1,802.40 (+$12.68, +0.71%)
⬆️ Resistance:  1850
⬇️ Support:  1740

M+ Online Technical Focus - 15 Aug 22
Computer Forms (M) Bhd: New factories to boost productivity

Trading Catalyst
• Engages in the printing and distributing of computer forms, stock forms and specialised forms.
• To re-locate existing printing and flexible packaging operations (current lease will be expiring in 2H23) to 2 factory buildings within Klang Valley with a minimum targeted built-up area of approximately 30,000-sqf each.
• Undertaking a bonus issue of 1 warrant for every 2 shares held on entitlement date that will be determined and announced later.
• Technically, traders may anticipate for potential breakout above RM1.06 to target the next resistances at RM1.16-1.20 with long term target at RM1.40.

Technical View

(i) CFM (S: RM0.97, R: RM1.16-1.20, LT TP: RM1.40, CL: RM0.965)

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

Economic Releases For The Week (15/8/2022-19/8/2022):

15/8/2022
JP - Japan's 2Q22 GDP Growth Rate (Preliminary), 7.50AM
CN - China's Retail Sales, 10.00AM
CN - China's Industrial Production, 10.00AM
CN - China's Unemployment Rate, 10.00AM

16/8/2022
UK - United Kingdom's Unemployment Rate, 2.00PM
EU - Eurozone's ZEW Economic Sentiment, 5.00PM
US - United States' Industrial Production, 9.15PM
US - United States' Manufacturing Production, 9.15PM

17/8/2022
JP - Japan's Machinery Orders, 7.50AM
UK - United Kingdom's Inflation Rate, 2.00PM
EU - Eurozone's 2Q22 GDP Growth Rate (2nd Est), 5.00PM
US - United States' Retail Sales, 8.30PM

18/8/2022
US - United States' FOMC Minutes, 2.00AM
EU - Eurozone's Inflation Rate, 5.00PM
US - United States' Existing Home Sales, 10.00PM

19/8/2022
JP - Japan's Inflation Rate, 7.30AM
UK - United Kingdom's Retail Sales, 2.00PM

Market update: The FBM KLCI eked out marginal gains amidst the positive-biased regional market. Also, Wall Street ended positively with the easing inflation expectations, coupled with the stronger-than-expected consumer sentiment should see buying interest spilling over to our stock markets. Given the key index is staying above the 1,500 level, the local bourse may see more upward movement driven by optimism ahead of the upcoming reporting season, in view of the better-than-expected Malaysia GDP data. Commodities wise, the crude oil price hovered around the USD98 per barrel mark, while the CPO price surged above RM4,400. 

Sector focus: The technology sector should be in focus as Nasdaq resumed in its uptrend move overnight. Meanwhile, investors are likely to put defensive stocks such as selected banking, consumer, and REIT counters on radar ahead of the reporting season in expectation of their solid earnings. Meanwhile, the plantation sector may gain traction given the stronger CPO price.

Stocks to watch: 

Technology & Telco: CNERGEN, DSONIC, GENETEC, GTRONIC, JFTECH, JHM, KGB, OPCOM, UNISEM
Plantation: BPLANT, SOP, TSH
Consumer: BONIA, FIAMMA, MYNEWS
Properties: GOB, SIMEPROP, SPSETIA
Power-related: PEKAT, SLVEST, YTLPOWR
Oil & Gas: DAYANG, YINSON
Others: PCCS, PGF 

Source: M+ Online

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