M+ Online Morning Market Buzz - 1Sep22

Dow Jones: 31,510.43 pts (-280.44pts, -0.88%)
⬆️ Resistance:  34100
⬇️ Support:  30900

FBM KLCI: 1,512.05 pts (+10.48pts, +0.70%)
⬆️ Resistance:  1550
⬇️ Support:  1450

HSI Index: 19,954.39 pts (+5.36pts, +0.03%)
⬆️ Resistance:  20600
⬇️ Support:  19100

Crude Palm Oil: RM4,144 (-RM30, -0.72%)
⬆️ Resistance:  4430
⬇️ Support:  4030

Brent Oil: $96.49 (-$2.82, -2.84%)
⬆️ Resistance:  107.60
⬇️ Support:  93.60

Gold: $1,711.04 (-$12.98, -0.75%)
⬆️ Resistance:  1810
⬇️ Support:  1680

M+ Online Technical Focus - 1Sep22
Solarvest Holdings Bhd: Going green gradually

Trading Catalyst
• One of the leading solar turnkey engineering, procurement, construction and commissioning (EPCC) service provider with established track record in Large Scale Solar PV, residential, commercial and industrial properties projects.
• Unbilled orderbook of RM727.0m will sustain earnings growth over the next 2 years.
• To leverage on the rising adoption of renewable energy with potentially more goodies from the upcoming Budget 2023 announcement.
• Technically, traders may anticipate for a potential flag-formation breakout above RM0.78 to target the next resistance at RM0.815-0.855, with long term target at RM0.97.

Technical View

(i) SLVEST (S: RM0.675, R: RM0.815-0.855, LT TP: RM0.97, CL: RM0.67)

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

Market update: The FBM KLCI extended its winning streak, bucking the negative performance on Wall Street. While the key index managed to trade positively against the global stock markets, investors should remain cautious with the ongoing increased volatility environment attributed to the hawkish tone by the Fed; we expect the noise to continue until the next CPI data release and FOMC meeting. Commodities wise, the crude oil price trended lower around USD96 per barrel mark due to fears over global economic slowdown. Meanwhile, the CPO price hovered above RM4,100.

Sector focus: The technology sector should see some selling pressure as Nasdaq fell below the key 12,000 level. Besides, investors may take profit in the energy sector as crude oil price slumped amid worries over softer demand. Nevertheless, stocks with solid earnings will be in the focus at least for the near term.

Stocks to watch: 

Consumer: FIAMMA, KAWAN, MRDIY
Medical-related: CENGILD, SCOMNET
Power-related: SAMAIDEN, YTLPOWR
O&G: DAYANG, DELEUM, PANTECH
Furniture-related: ECOMATE, SIGN
Others: HIGHTEC, KSL, PMBTECH

Source: M+ Online

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