M+ Online Morning Market Buzz - 3 Apr 23 
 
Dow Jones: 33,274.15 pts (+415.12pts, +1.26%) 
⬆️ Resistance:  34000 
⬇️ Support:  31700 
 
FBM KLCI: 1,422.59 pts (-2.02pts, -0.14%) 
⬆️ Resistance:  1460 
⬇️ Support:  1370 
 
HSI Index: 20,400.11 pts (+90.98pts, +0.45%) 
⬆️ Resistance:  21200 
⬇️ Support:  19200 
 
Crude Palm Oil: RM3,761 (-RM27, -0.71%) 
⬆️ Resistance:  3890 
⬇️ Support:  3460 
 
Brent Oil: $79.89 (+$0.62, +0.78%) 
⬆️ Resistance:  81.40 
⬇️ Support:  73.40 
 
Gold: $1,969.28 (-$11.09, -0.56%) 
⬆️ Resistance:  2030 
⬇️ Support:  1910 
 
M+ Online Technical Focus - 3 Apr 23 
Power Root Bhd: Market expansion and products diversification driving growth 
 
Trading Catalyst 
• Regarded as one of the leading beverage manufacturers and is a specialist distributor coffee, tea, chocolate malt drinks and herbal energy drinks. 
• Apart from products expansions and diversification, PWROOT aims to expand market share through competitive pricing. 
• New ready-to-drink (RTD) products plant that is expected to be completed by 2024 will be a key revenue growth driver. 
• Technically, price has experienced a short-term resistance breakout above RM2.11 and may target the next resistances at RM2.24-2.31 with long term target set at RM2.50. 
 
Technical View 
 
(i) PWROOT (S: RM2, R: RM2.24-2.31, LT TP: RM2.50, CL: RM1.99) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 
Economic Releases For The Week (3/4/2023-7/4/2023): 
 
3/4/2023 
JP - Japan's Jibun Bank Manufacturing PMI, 8.30AM 
MY - Malaysia's S&P Global Manufacturing PMI, 8.30AM 
CN - China's Caixin Manufacturing PMI, 9.45AM 
EU - Eurozone's S&P Global Manufacturing PMI, 4.00PM 
UK - United Kingdom's S&P Global Manufacturing PMI, 4.30PM 
US - United States' S&P Global Manufacturing PMI, 9.45PM 
US - United States' ISM Manufacturing PMI, 10.00PM 
 
4/4/2023 
EU - Eurozone's Producer Price Index, 5.00PM 
US - United States' Factory Orders, 10.00PM 
 
5/4/2023 
JP - Japan's Jibun Bank Services PMI, 8.30AM 
JP - Japan's Jibun Bank Composite PMI, 8.30AM 
EU - Eurozone's S&P Global Services PMI, 4.00PM 
EU - Eurozone's S&P Global Composite PMI, 4.00PM 
UK - United Kingdom's S&P Global Services PMI, 4.30PM 
UK - United Kingdom's S&P Global Composite PMI, 4.30PM 
US - United States' S&P Global Services PMI, 9.45PM 
US - United States' S&P Global Composite PMI, 9.45PM 
US - United States' ISM Non-Manufacturing PMI, 10.00PM 
 
6/4/2023 
CN - China's Caixin Services PMI, 9.45AM 
CN - China's Caixin Composite PMI, 9.45AM 
 
7/4/2023 
US - United States' Unemployment Rate, 8.30PM 
 
Source: Bloomberg, M+ Online

Market update: The FBM KLCI ended 1Q23 on a negative note as profit taking activities emerged after the noon trading break last Friday. Nevertheless, we foresee a comeback on the local bourse following the further breakout on Wall Street overnight, coupled with an anticipation of a brighter outlook after Malaysia securing RM170bn worth of investment commitments from China. Sectors that will benefit from the investment are likely to hog the limelight. Commodities wise, the Brent crude oil price hovered above USD79, but with the surprise cut of 1.16m bpd from OPEC+, the Brent oil price surged above USD85, while the CPO traded above RM3,750. 
 
Sector focus: Focus is likely to shift towards the O&G stocks with the surprised production cut by OPEC+, while the technology sector may see improvement following the strong surge on Nasdaq last week. Meanwhile, with China agreed to explore new areas of cooperation with Malaysia, the sectors in focus may include construction, building material, green technology and automotive.

Stocks to watch:  
Transportation and Logistics: CAPITALA, FM
Poultry: LAYHONG, YENHER
Technology: PENTA, UNISEM
Financial related: PPJACK, RCECAP
O&G: DANCO, T7GLOBAL 
Consumer: MASTER, PADINI
Others: KPJ, MCEHLDG, SAMAIDEN, T7GLOBAL, TEXCYCL

Source: M+ Online

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