M+ Online Morning Market Buzz - 13 Mar 23

Dow Jones: 31,909.64 pts (-345.22pts, -1.07%)
⬆️ Resistance:  34300
⬇️ Support:  31200

FBM KLCI: 1,433.08 pts (-16.45pts, -1.13%)
⬆️ Resistance:  1500
⬇️ Support:  1410

HSI Index: 19,319.92 pts (-605.82pts, -3.04%)
⬆️ Resistance:  21500
⬇️ Support:  18900

Crude Palm Oil: RM4,093 (-RM112, -2.66%)
⬆️ Resistance:  4410
⬇️ Support:  4010

Brent Oil: $82.78 (+$1.19, +1.46%)
⬆️ Resistance:  88.50
⬇️ Support:  79.20

Gold: $1,868.26 (+$37.23, +2.03%)
⬆️ Resistance:  1910
⬇️ Support:  1780

M+ Online Technical Focus - 13 Mar 23
Malayan Flour Mills Bhd: Pioneer in flour milling

Trading Catalyst
• Regarded as the pioneer in the flour milling industry in Malaysia with milling capacity of 1,810 tonnes of wheat per day and involves in poultry operations, aquatic breeding and feeds as well as trading of grains.
• Leveraging onto the rising demand for processed meat in QSR and food manufacturing sectors.
• Government’s move in mulling to lift the ceiling price of chicken and eggs bodes well for MFLOUR’s poultry operations.
• Technically, traders may anticipate for a short-term breakout above RM0.805 to target the next resistances at RM0.84-0.86 with long term target set at RM0.90.

Technical View

(i) MFLOUR (S: RM0.75, R: RM0.84-0.86, LT TP: RM0.9, CL: RM0.745)

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

Economic Releases For The Week (13/3/2023-17/3/2023):

13/3/2023
MY - Malaysia's Retail Sales, 12.00PM
MY - Malaysia's Industrial Production, 12.00PM

14/3/2023
UK - United Kingdom's Unemployment Rate, 3.00PM
US - United States' Inflation Rate, 8.30PM

15/3/2023
CN - China's Retail Sales, 10.00AM
CN - China's Industrial Production, 10.00AM
CN - China's Unemployment Rate, 10.00AM
EU - Eurozone's Industrial Production, 6.00PM
US - United States' Retail Sales, 8.30PM
US - United States' Producer Price Index, 8.30PM

16/3/2023
JP - Japan's Industrial Production, 12.30PM
EU - Eurozone's European Central Bank's Interest Rate Decision, 9.15PM

17/3/2023
EU - Eurozone's Inflation Rate, 6.00PM
US - United States' Industrial Production, 9.15PM
US - United States' Manufacturing Production, 9.15PM
US - United States' Michigan Consumer Sentiment (Preliminary), 10.00PM

Market update: The FBM KLCI succumbed to broad-based selling pressure amidst intensified selldown across regional markets due to persisted worries over interest rate hikes and concerns over the Silvergate and SVB events last week. We believe the risk will remain tilted to the downside given the potential contagion effect within the banking sector in the near term as New York Signature Bank is being shut down, but there is a glimpse of hope on the potential bailout situation at this juncture; the US futures are rising. Meanwhile, the US inflation rate will be in focus this week. Commodities wise, the crude oil is above USD82, while CPO is above RM4,000. 
 
Sector focus: The negative sentiment abroad may cause the banking and technology sectors to observe a slight selldown at the start of the session, however we expect swift recovery towards the end of the session. Besides, the plantation sector may also fall amidst lower CPO prices. We reckon investors may get exposure into defensive sectors such as the telco, utilities, and REITs.

Stocks to watch: 
Consumer: FIAMMA, FOCUSP, LAYHONG, MFLOUR, PELIKAN
O&G: DELEUM, UZMA
Property: EWEIN, IOIPG, TANCO
Utilities-related: RANHILL, TOYOVEN
Others: AMTEL, SYF, VOLCANO, VSTECS

Source: M+ Online

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