M+ Online Morning Market Buzz - 13 Feb 23

Dow Jones: 33,869.27 pts (+169.39pts, +0.50%)
⬆ Resistance: 34700
⬇ Support: 33100

FBM KLCI: 1,474.59 pts (+9.95pts, +0.68%)
⬆ Resistance: 1500
⬇ Support: 1435

HSI: 21,190.42 pts (-433.94pts, -2.01%)
⬆ Resistance: 22100
⬇ Support: 20700

Crude Palm Oil: RM3,931.00 (-RM42.00, -1.06%)
⬆ Resistance: 4100
⬇ Support: 3700

Brent Oil: $86.39 (+$1.89 +2.24%)
⬆ Resistance: 90
⬇ Support: 80

Gold: $1,865.57 (+$3.79, +0.20%)
⬆ Resistance: 1946
⬇ Support: 1839

M+ Online Technical Focus - 13 Feb 23
Uzma Bhd: Leveraging onto higher oil prices

Trading Catalyst
• An integrated oil & gas player providing innovative and cost-effective solutions to the exploration, development and production value chain of the O&G industry.
• Outstanding orderbook at approximately RM2.00bn implying an orderbook-to-cover ratio of 5.2x against FY22 revenue of RM385.1m will sustain earnings over the next 5 years.
• Russia’s move to cut 500,000 bpd of oil output from March 2023 may boost oil prices and indirectly benefit upstream oil & gas players such as UZMA.
• Technically, traders may anticipate for a potential flag-formation breakout above RM0.61 to target the next resistances at RM0.65-0.67 with long term target at RM0.725.

Technical View

(i) UZMA (S: RM0.565, R: RM0.65-0.67, LT TP: RM0.725, CL: RM0.56)

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

Economic Releases For The Week 13/2/2023-17/2/2023):

14/02/2023
JP - Japan's 4Q22 GDP Growth Rate (Preliminary), 7.50AM
JP - Japan's Industrial Production, 12.30PM
UK - United Kingdom's Unemployment Rate, 3.00PM
US - United States' Inflation Rate, 9.30PM

15/02/2023
UK - United Kingdom's Inflation Rate, 3.00PM
EU - Eurozone's Industrial Production, 6.00PM
US - United States' Retail Sales, 9.30PM
US - United States' Industrial Production, 10.15PM
US - United States' Manufacturing Production, 10.15PM

16/02/2023
JP - Japan's Machinery Orders, 7.50AM
US - United States' Producer Price Index, 9.30PM

17/02/2023
UK - United Kingdom's Retail Sales, 3.00PM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI recovered from its three-session losses on bargain hunting activities, especially in banking and energy heavyweights. Global sentiment remained mixed as investors are likely to pay attention to the US inflation rate which will be released this week; this may determine the direction of the interest rate going forward. Meanwhile, the local bourse should focus on the earnings reporting season as well as the re-tabling of Budget 2023. Commodities wise, the Brent crude oil price jumped above USD86 per barrel on rising demand from China, while the CPO traded above RM3,900. 
 
Sector focus: The construction and building material sectors may shine prior to the re-tabling of Budget 2023. Meanwhile, the renewable energy sector could be in focus on market’s anticipation over favourable policy towards the sector. Also, the oil & gas sector may gain momentum on higher crude oil prices. 

Stocks to watch: 
Technology: KGB, RAMSSOL 
Building material: KSSC, PA, SCGBHD
Construction: MUHIBAH, WCEHB, WCT
Power-related: JSB, SAMAIDEN
O&G: CARIMIN, T7GLOBAL, UZMA
Plantation: JTIASA, PLS
Others: HHGROUP, OWG, PRLEXUS, YENHER

Source: M+ Online

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