M+ Online Morning Market Buzz - 29 Aug 22

Dow Jones: 32,283.40 pts (-1008.38pts, -3.03%)
⬆️ Resistance:  34300
⬇️ Support:  31700

FBM KLCI: 1,500.29 pts (+4.80pts, +0.32%)
⬆️ Resistance:  1540
⬇️ Support:  1440

HSI Index: 20,170.04 pts (+201.66pts, +1.01%)
⬆️ Resistance:  20600
⬇️ Support:  18900

Crude Palm Oil: RM4,172 (-RM86, -2.02%)
⬆️ Resistance:  4440
⬇️ Support:  3980

Brent Oil: $100.99 (+$1.65, +1.66%)
⬆️ Resistance:  104.60
⬇️ Support:  90.60

Gold: $1,738.14 (-$20.57, -1.17%)
⬆️ Resistance:  1810
⬇️ Support:  1700

M+ Online Technical Focus - 29 Aug 22
Thong Guan Industries Bhd: Long term expansion on horizon

Trading Catalyst
• Regarded as one of the largest stretch film manufacturers in Malaysia that is supported by 17 factories with more than 2,000 employees and products are exported to 70 countries worldwide.
• Undertaking a relatively large-scale expansion plan on a 16.0-ac manufacturing and office complex in Sungai Petani, Kedah over a 6-year period from 2021 to 2026. 
• Operates in a healthy balance sheet with net gearing standing at 0.1x as at end-1QFY22.
• Technically, traders may anticipate for a potential breakout above RM2.66 to target the next resistances at RM2.84-2.90, with long term target at RM2.98.

Technical View

(i) TGUAN (S: RM2.52, R: RM2.84-2.90, LT TP: RM2.98, CL: RM2.51)

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

Economic Releases For The Week (29/8/2022-2/9/2022):

29/8/2022
MY - Malaysia's Inflation Rate, 12.00PM
MY - Malaysia's Producer Price Index, 12.00PM

30/8/2022
JP - Japan's Unemployment Rate, 7.30AM
EU - Eurozone's Economic Sentiment, 5.00PM
EU - Eurozone's Industrial Sentiment, 5.00PM
EU - Eurozone's Services Sentiment, 5.00PM
EU - Eurozone's Consumer Confidence, 5.00PM

31/8/2022
JP - Japan's Retail Sales, 7.50AM
CN - China's NBS Manufacturing PMI, 9.30AM
CN - China's NBS Non Manufacturing PMI, 9.30AM
JP - Japan's Consumer Confidence, 1.00PM
EU - Eurozone's Inflation Rate (Flash), 5.00PM
US - United States' Chicago PMI, 9.45PM

1/9/2022
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 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

2/9/2022
EU - Eurozone's Producer Price Index, 5.00PM
US - United States' Unemployment Rate, 8.30PM
US - United States' Factory Orders, 10.00PM

Market update: The FBM KLCI extended gains to close marginally above the psychological 1,500 level on Friday, tracking the improved sentiment across regional markets last week. However, the local bourse may be headed for a widespread selloff, following a sharp decline on Wall Street overnight after the US Fed’s Chair reiterated its hawkish tone to tame inflation. We believe the US Fed’s interest rate decision going forward will continue to fuel market volatility. On the local front, investors may watch for Malaysia’s inflation rate at noon. Commodities wise, the crude oil price climbed above USD100, while the CPO traded above RM4,150. 

Sector focus: Investors may avoid technology stocks amid resurgence in concerns over implications of higher interest rate on the global markets. Meanwhile, investors may be in favour the defensive sectors such as consumer stocks, REIT, building material, utilities and banking sectors to prepare for a volatile period.

Stocks to watch: 

Consumer: 3A, AEON, FIAMMA, PWROOT
Finance-related: ABMB, CIMB
Power -related: MALAKOF, YTLPOWR
O&G: ARMADA, COASTAL, YINSON
Packaging-related: SCIENTX, TGUAN
Technology-related: AWANTEC, GTRONIC, MTAG
Others: MCEMENT

Source: M+ Online

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