M+ Online Morning Market Buzz - 16 Jan 23 
 
Dow Jones: 34,302.61 pts (+112.64pts, +0.33%) 
⬆️ Resistance:  35100 
⬇️ Support:  32800 
 
FBM KLCI: 1,495.03 pts (+6.37pts, +0.43%) 
⬆️ Resistance:  1530 
⬇️ Support:  1460 
 
HSI Index: 21,738.66 pts (+224.56pts, +1.04%) 
⬆️ Resistance:  22300 
⬇️ Support:  20800 
 
Crude Palm Oil: RM3,845 (-RM77, -1.96%) 
⬆️ Resistance:  4210 
⬇️ Support:  3760 
 
Brent Oil: $85.28 (+$1.25, +1.49%) 
⬆️ Resistance:  87.30 
⬇️ Support:  76.90 
 
Gold: $1,920.23 (+$23.14, +1.22%) 
⬆️ Resistance:  1970 
⬇️ Support:  1830 
 

M+ Online Technical Focus - 16 Jan 23
EG Industries Bhd: Progressing into smart manufacturing

Trading Catalyst
• More than 20 years of operational history in the manufacturing of Electronic Manufacturing Services (EMS), backed by more than 3,000 employees.
• Tapping into the 5G technology evolvement, having secured a letter of intent (LOI) with US-based Cambridge Industries Group (CIG).
• Smart Factory 4.0 at Batu Kawan, Penang that digitises material flows for autonomous manufacturing is expected to commence in 2024.
• Technically, price has formed a flag-formation breakout above RM0.57 and may target the next resistances at RM0.60-0.62 with long term target at RM0.67."

Technical View

(i) EG (S: RM0.54, R: RM0.60-0.62, LT TP: RM0.67, CL: RM0.535)

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

Source: Bloomberg, M+ Online

M+ Online Technical Focus - 16 Jan 23 
EG Industries Bhd: Progressing into smart manufacturing 
 
Trading Catalyst 
• More than 20 years of operational history in the manufacturing of Electronic Manufacturing Services (EMS), backed by more than 3,000 employees. 
• Tapping into the 5G technology evolvement, having secured a letter of intent (LOI) with US-based Cambridge Industries Group (CIG). 
• Smart Factory 4.0 at Batu Kawan, Penang that digitises material flows for autonomous manufacturing is expected to commence in 2024. 
• Technically, price has formed a flag-formation breakout above RM0.57 and may target the next resistances at RM0.60-0.62 with long term target at RM0.67." 
 
Technical View 
 
(i) EG (S: RM0.54, R: RM0.60-0.62, LT TP: RM0.67, CL: RM0.535) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 

Economic Releases For The Week (16/1/2023-20/1/2023):

16/1/2023
JP - Japan's Producer Price Index, 7.50AM

17/1/2023
CN - China's 4Q22 GDP Growth Rate, 10.00AM
CN - China's Industrial Production, 10.00AM
CN - China's Retail Sales, 10.00AM
CN - China's Unemployment Rate, 10.00AM
UK - United Kingdom's Unemployment Rate, 3.00PM
EU - Eurozone's ZEW Economic Sentiment Index, 6.00PM

18/1/2023
JP - Japan's Bank of Japan's Interest Rate Decision, 11.00AM
JP - Japan's Industrial Production, 12.30PM
UK - United Kingdom's Inflation Rate, 3.00PM
EU - Eurozone's Inflation Rate, 6.00PM
US - United States' Retail Sales, 9.30PM
US - United States' Producer Price Index, 9.30PM
US - United States' Industrial Production, 10.15PM
US - United States' Manufacturing Production, 10.15PM

19/1/2023
MY - Malaysia's Bank Negara's Interest Rate Decision, 3.00PM

20/1/2023
JP - Japan's Inflation Rate, 7.30AM
MY - Malaysia's Inflation Rate, 12.00PM
UK - United Kingdom's Retail Sales, 3.00PM
US - United States' Existing Home Sales, 11.00PM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI notched gains for the third consecutive session as investors took cue from the bullish sentiment on Wall Street following a cooler inflation data. As the market rebounded on Wall Street after better-than-expectation results were seen in banking counters, the positive trading sentiment may spillover to our local front. Meanwhile, traders may focus on China’s reopening theme, while awaiting Malaysia’s inflation rate and the Bank Negara interest rate decision this week. Commodities wise, the Brent crude oil price climbed above USD85, while the CPO price consolidated below RM3,850. Gold price rose above USD1,900. 

Sector focus: The technology sector should see buying momentum building up as the Nasdaq steadied above the 11,000 level. Besides, investors can add exposure to banking stocks ahead of Malaysia’s interest rate decision. In view of the rising gold price, trading interest could be seen in gold counters.

Stocks to watch: 
Technology: GENETEC, GHLSYS, JHM, QES
Consumer: OWG, SDS, SEM
Building material: AJIYA, PMBTECH
O&G: CARIMIN, HIBISCS
Medical-related: CENGILD, DPHARMA, SCOMNET
Others: AFFIN, HHGROUP, KPS, OSK, PTRANS, SWSCAP, WPRTS

Source: M+ Online

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