M+ Online Morning Market Buzz - 2 May 23

Dow Jones: 34,051.70 pts (-46.46pts, -0.14%)
⬆️ Resistance:  35000

⬇️ Support:  32600

FBM KLCI: 1,415.95 pts (-2.10pts, -0.15%)
⬆️ Resistance:  1460

⬇️ Support:  1390

HSI Index: 19,894.57 pts (+54.29pts, +0.27%)
⬆️ Resistance:  20600

⬇️ Support:  19200

Crude Palm Oil: RM3,338 (-RM117, -3.39%)
⬆️ Resistance:  3740

⬇️ Support:  3230

Brent Oil: $79.31 (-$0.23, -0.29%)
⬆️ Resistance:  84.80

⬇️ Support:  75.90

Gold: $1,982.56 (-$7.44, -0.37%)
⬆️ Resistance:  2050

⬇️ Support:  1940

M+ Online Technical Focus - 2 May 23

Capital A Bhd: Clear skies for the take off

Trading Catalyst
• Transformed from one of the leading ASEAN airline service providers into a digital travel and lifestyle platform that leverages data and technology.
• Strong pent-up demand resulted in more 100,000 seats sold for commercial flights into China since January 2023.
• Returned to the black in 4QFY22 after 13 consecutive quarters in the red and expects to complete the PN17 status regularisation plan in 3Q23.

• Technically, traders may anticipate for a potential triangle formation breakout above RM0.765 to target the next resistances at RM0.805-0.83 with long term target set at RM0.88.

Technical View

(i) CAPITALA (S: RM0.72, R: RM0.805-0.83, LT TP: RM0.88, CL: RM0.715)

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

Economic Releases For The Week (1/5/2023-5/5/2023):

1/5/2023
JP - Japan's Jibun Bank Manufacturing PMI, 8:30AM
US - United States' S&P Global Manufacturing PMI, 9:45PM

US - United States' ISM Manufacturing PMI, 10:00PM

2/5/2023
MY - Malaysia's S&P Global Manufacturing PMI, 8:30AM
CN - China's Caixin Composite PMI, 9:45AM
JP - Japan's Consumer Confidence, 1.00PM
EU - Eurozone's S&P Global Manufacturing PMI, 4.00PM
UK - United Kingdom's S&P Global Manufacturing PMI, 4:30PM
EU - Eurozone's Inflation (Flash), 5.00PM

US - United States' Factory Orders, 10:00PM

3/5/2023
MY - Malaysia's Bank Negara's Interest Rate Decision, 3:00PM
EU - Eurozone's Unemployment Rate, 5:00PM
US - United States' S&P Global Services PMI, 9:45PM
US - United States' S&P Global Composite PMI, 9:45PM

US - United States' ISM Services PMI, 10:00PM

4/5/2023
US - United States' Federal Reserve Interest Rate Decision, 2.00AM
CN - China's Caixin Services PMI, 9:45AM
CN - China's Caixin Composite PMI, 9:45AM
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
EU - Eurozone's Producer Price Index, 5:00PM

EU - Eurozone's European Central Bank Interest Rate Decision, 8.15PM

5/5/2023
EU - Eurozone's Retail Sales, 5:00PM

US - United States' Unemployment Rate, 8:30PM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI retreated despite the rally on Wall Street as the sentiment was dragged down by selling pressure in the financial and plantation heavyweight. Investors may remain wary following the decline on Wall Street after First Republic was sold to JPMorgan. Meanwhile, the US Federal Reserve and ECB as well as Bank Negara Malaysia will be having their interest rate decisions this week, thus expecting softer trading activities on the overall markets. Commodities wise, the Brent crude oil price hovered below USD80, while the CPO traded above RM3,330. Gold price hovered above USD1,980. 

Sector focus: Given the persisting global uncertainties, we favour the utilities and telecommunication sector amid their defensive characteristics. Meanwhile, investors may look out for stocks in the travelling sector on the back of improving travelling activities. The commodities linked sectors may not be attractive amid a pullback in commodities prices.

Stocks to watch:
Energy: HIBISCS, WASEONG, YINSON, T7GLOBAL
Technology: MYEG, VITROX, PERTAMA
Building Materials: PMETAL, PGF 
Aviation: AAX, CAPITALA

Others: GASMSIA, PWF, EWINT, SLVEST, ASTRO, FGV

Source: M+ Online

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