M+ Online Morning Market Buzz - 27 Feb 23

Dow Jones: 32,816.92 pts (-336.99pts, -1.02%)
⬆️ Resistance: 34900
⬇️ Support: 32100

FBM KLCI: 1,456.80 pts (-0.85pts, -0.06%)
⬆️ Resistance: 1485
⬇️ Support: 1427

HSI: 20,010.04 pts (-341.31pts, -1.68%)
⬆️ Resistance: 21000
⬇️ Support: 19600

Crude Palm Oil: RM4,202.00 (RM-33.00, -0.78%)
⬆️ Resistance: 4240
⬇️ Support: 3980

Brent Oil: $83.16 (+$0.95 +1.16%)
⬆️ Resistance: 86
⬇️ Support: 78

Gold: $1,811.04 (-$11.24, -0.62%)
⬆️ Resistance: 1852
⬇️ Support: 1780

M+ Online Technical Focus - 27 Feb 23
Hibiscus Petroleum Bhd: On track for better production efficiency

Trading Catalyst
• Malaysia’s first public listed independent oil and gas exploration and production firm, focusing on the development and production of oilfield assets in United Kingdom, Malaysia and Australia.
• Production to optimise from the completion of major maintenance in Malaysian assets and the return of full production in Anasuria.
• Re-opening of China’s borders and Russia’s move to cut crude oil production may keep oil prices at elevated level.
• Technically, traders may anticipate for a potential breakout above RM1.10 to target the next resistances at RM1.17-1.25 with long term target set at RM1.40.

Technical View

(i) HIBISCS (S: RM1.03, R: RM1.17-1.25, LT TP: RM1.40, CL: RM1.02)

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

Economic Releases For The Week 27/2/2023-3/3/2023):

27/2/2023
MY - Malaysia's Producer Price Index, 12.00PM
EU - Eurozone's Economic Sentiment, 6.00PM
EU - Eurozone's Industrial Sentiment, 6.00PM
EU - Eurozone's Services Sentiment, 6.00PM
EU - Eurozone's Consumer Confidence, 6.00PM
US - United States' Pending Home Sales, 11.00PM

28/2/2023
JP - Japan's Retail Sales, 7.50AM
US - United States' Chicago PMI, 10.45PM
US - United States' CB Cosumer Confidence, 10.45PM

1/3/2023
JP - Japan's Jibun Bank Manufacturing PMI, 8.30AM
MY - Malaysia's S&P Global Manufacturing PMI, 8.30AM
CN - China's NBS Manufacturing PMI, 9.30AM
CN - China's NBS Non Manufacturing PMI, 9.30AM
CN - China's NBS General PMI, 9.30AM
CN - China's Caixin Manufacturing PMI, 9.45AM
EU - Eurozone's S&P Global Manufacturing PMI, 5.00PM
UK - United Kingdom's S&P Global/CIPS Manufacturing PMI, 5.30PM
US - United States' S&P Global Manufacturing PMI, 10.45PM
US - United States' ISM Manufacturing PMI, 11.00PM

2/3/2023
JP - Japan's Consumer Confidence, 1.00PM
EU - Eurozone's Unemployment Rate, 6.00PM
EU - Eurozone's Inflation Rate (Flash), 6.00PM

3/3/2023
JP - Japan's Unemployment Rate, 7.30AM
JP - Japan's Jibun Bank Services PMI, 8.30AM
JP - Japan's Jibun Bank Composite PMI, 8.30AM
CN - China's Caixin Services PMI, 9.45AM
CN - China's Caixin Composite PMI, 9.45AM
EU - Eurozone's S&P Global Services PMI, 5.00PM
EU - Eurozone's S&P Global Composite PMI, 5.00PM
UK - United Kingdom's S&P Global/CIPS UK Services PMI, 5.30PM
UK - United Kingdom's S&P Global/CIPS Composite PMI, 5.30PM
EU - Eurozone's Producer Price Index, 6.00PM
US - United States' S&P Global Services PMI, 10.45PM
US - United States' S&P Global Composite PMI, 10.45PM
US - United States' ISM Non-Manufacturing PMI, 11.00PM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI logged marginal losses after hovering mostly in the negative territory, taking cue from the negative biased regional markets. Following a sharp selldown on Wall Street in the previous week, we reckon the regional markets and the local bourse may stay rocky while investors could be looking out for fresh catalysts. Meanwhile, we believe the downside risk could be limited following the revised Budget 2023 as investors may trade in sectors that will benefit from it. Commodities wise, the Brent crude oil price remained solid above USD83 per barrel, while the CPO traded above RM4,200. 
 
Sector focus: The consumer sector may benefit from the revised Budget 2023 that focuses on addressing high cost of living. Renewable energy sector may also benefit from the revised budget. Besides, the commodities related plantation and energy sectors may gain momentum amid firm crude oil and CPO commodities prices.

Stocks to watch: 
O&G: DELEUM, HIBISCS, PANTECH, PERDANA, UZMA, WASEONG, YINSON
Construction: HSSEB, SSB8
Pharmaceutical: DPHARMA, YSPSAH
Consumer: CCK, KTC, PWROOT
Others: AXIATA, GREATEC, SAMAIDEN, SMISCOR 

Source: M+ Online

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