M+ Online Morning Market Buzz - 20 Feb 23 
 
Dow Jones: 33,826.69 pts (+129.84pts, +0.39%) 
⬆️ Resistance: 35000 
⬇️ Support: 32800 
 
FBM KLCI: 1,476.90 pts (-7.36pts, -0.50%) 
⬆️ Resistance: 1489 
⬇️ Support: 1435 
 
HSI: 20,719.81 pts (-267.86pts, -1.28%) 
⬆️ Resistance: 21700 
⬇️ Support: 20300 
 
Crude Palm Oil: RM4,131.00 (+RM62.00, +1.52%) 
⬆️ Resistance: 4140 
⬇️ Support: 3840 
 
Brent Oil: $83.00 (-$2.14 -2.51%) 
⬆️ Resistance: 87 
⬇️ Support: 81 
 
Gold: $1,842.36 (+$6.00, +0.33%) 
⬆️ Resistance: 1891 
⬇️ Support: 1809 
 
M+ Online Technical Focus - 20 Feb 23 
TSH Resources Bhd: Unlocking asset value 
 
Trading Catalyst 
• Plantation operations span over 42,000-ha across Sabah and Indonesia, while 67.0%-owned subsidiary; Ekowood International Bhd has a production capacity up to 27.0m sqf of engineering hardwood flooring (EHF) per annum. 
• Disposal of 13,898-ha of a largely undeveloped oil palm land at Kalimantan for RM731.0m cash has pared down gearing to 0.2x in 3QFY22 and is expected to generate an interest saving of approximately RM20.0m per annum." 
• CPO prices to remain fair stable, premised to the re-opening of China’s borders and Indonesia’s move to suspend some palm oil export permits.  
• Technically, price has experienced a short-term breakout above RM1.10 and may target the next resistance of RM1.15-1.20, with long term target at RM1.32. 
 
Technical View 
 
(i) TSH (S: RM1.05, R: RM1.15-1.20, LT TP: RM1.32, CL: RM1.04) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 
Economic Releases For The Week 20/2/2023-24/2/2023): 
 
21/2/2023 
EU - Eurozone's ZEW Economic Sentiment Index, 6.00PM 
US - United States' Existing Home Sales, 11.00PM 
 
23/2/2023 
US - United States' FOMC Minutes, 3.00AM 
EU - Eurozone's Inflation Rate, 6.00PM 
US - United States' 4Q22 GDP Growth Rate (2nd Estimate), 9.30PM 
 
24/2/2023 
JP - Japan's Inflation Rate, 7.30AM 
MY - Malaysia's Inflation Rate, 12.00PM 
US - United States' New Home Sales, 11.00PM 
US - United States' Michigan Consumer Sentiment, 11.00PM 
 
Source: Bloomberg, M+ Online

Market update: The FBM KLCI consolidated further last Friday amidst bearish sentiment across the regional markets. However, we believe bargain hunting activities may emerge on the local bourse after a broad-based selldown ahead of the re-tabling of Budget 2023, but the global sentiment could weighed further by renewed concerns over expectations of larger interest rate hikes going forward. This week, investors may keep an eye on the US FOMC minutes, US GDP growth rate (second estimates), Eurozone’s inflation rate, Malaysia’s inflation rate, as well as the re-tabling of Budget 2023. Commodities wise, the Brent crude oil price hovered above USD83, while the CPO price climbed above RM4,100. 
 
Sector focus: The plantation sector may gain traction in view of the firmer CPO commodities prices hovering above RM4,100. Besides, construction, building material, and renewable energy sectors may look attractive prior to the re-tabling of Budget 2023 on the upcoming Friday.

Stocks to watch: 
Construction: CGB, NESTCON
Medical-related: KOTRA, YSPSAH
Power-related: SAMAIDEN, TENAGA, TOYOVEN
Telco: AXIATA, DIGI
Automotive: GLOTEC, MCEHLDG
Plantation-related: HHGROUP, TSH, JTIASA
Others: PPJACK, SIGN, SYSTECH, T7GLOBAL, TNLOGIS 

Source: M+ Online

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