M+ Online Morning Market Buzz - 22 Aug 22

Dow Jones: 33,706.74 pts (-292.30pts, -0.86%)
⬆️ Resistance:  35000
⬇️ Support:  33000

FBM KLCI: 1,504.44 pts (-12.18pts, -0.80%)
⬆️ Resistance:  1560
⬇️ Support:  1480

HSI Index: 19,773.03 pts (+9.12pts, +0.05%)
⬆️ Resistance:  20700
⬇️ Support:  19300

Crude Palm Oil: RM4,093 (+RM50, +1.24%)
⬆️ Resistance:  4460
⬇️ Support:  3920

Brent Oil: $96.72 (+$0.13, +0.13%)
⬆️ Resistance:  100.20
⬇️ Support:  89.70

Gold: $1,747.06 (-$11.55, -0.66%)
⬆️ Resistance:  1840
⬇️ Support:  1720

M+ Online Technical Focus - 22 Aug 22
Deleum Bhd: Better prospects from elevated oil prices

Trading Catalyst
• History dated back to 1982 and has evolved into a major upstream oil & gas player that offers power and machinery (P&M) business through a joint venture, provision of oilfield services (OS) and integrated corrosion solutions (ICS).
• Healthy outstanding order book at approximately RM2.20bn that will provide earnings visibility over the next 18 months.
• Operates in a healthy balance sheet with a net cash position of RM176.5m, translating to net cash per share of 44.0 sen (c.72.1% of share price).
• Technically, price has formed a short-term breakout above RM0.595 and may trend higher to target the next resistances at RM0.635-0.675 with long term target at RM0.76.

Technical View

(i) DELEUM (S: RM0.56, R: RM0.635-0.675, LT TP: RM0.76, CL: RM0.555)

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

Economic Releases For The Week (22/8/2022-26/8/2022):

23/8/2022
US - United States' New Home Sales, 10.00PM

24/8/2022
US - United States' Pending Home Sales, 10.00PM

25/8/2022
US - United States' 2Q22 GDP Growth Rate (2nd Est), 8.30PM

26/8/2022
MY - Malaysia's Inflation Rate, 12.00PM
US - United States' Michigan Consumer Sentiment, 10.00PM

Market update: The FBM KLCI drifted lower last Friday in tandem with most of the regional markets as persistent selling pressure were noticed following the elevated inflation data in the European region. With the global investors reassessing the risks of interest rate hikes by the US Feds moving forward, growth stocks may see some selling pressure. Nevertheless, we believe traders on the local bourse may remain cautiously optimistic amid the earnings season, while monitoring Malaysia’s inflation rate that will be released this Friday. Commodities wise, the crude oil hovered around USD96, while the CPO is priced above RM4,000. 

Sector focus: The technology sector may see a pullback following a slump in Nasdaq overnight. Meanwhile, investors may turn their focus to stocks with solid earnings prospects such as selected consumer, banking, and REITs. The telecommunication stocks may see some buying interest as our finance minister has commented there will be no extensions for telcos to sign up with DNB for 5G.

Stocks to watch: 

Transportation & Logistics: FM, MAYBULK
Consumer: BJFOOD, BONIA, INNATURE, PADINI
Technology & Telco: D&O, KGB, MTAG, PERTAMA
Solar-related: PEKAT, SLVEST
Plastic: BPPLAS, TGUAN
Others: AJIYA, DELEUM, ECOMATE, OWG

Source: M+ Online

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