M+ Online Morning Market Buzz - 3 May 23

Dow Jones: 33,684.53 pts (-367.17pts, -1.08%)

⬆️ Resistance:  35000

⬇️ Support:  32600

FBM KLCI: 1,426.11 pts (+10.16pts, +0.72%)

⬆️ Resistance:  1460

⬇️ Support:  1390

HSI Index: 19,933.81 pts (+39.24pts, +0.20%)

⬆️ Resistance:  20700

⬇️ Support:  19200

Crude Palm Oil: RM3,401 (-RM20, -0.58%)

⬆️ Resistance:  3710

⬇️ Support:  3230

Brent Oil: $75.32 (-$3.99, -5.03%)

⬆️ Resistance:  83.10

⬇️ Support:  73.60

Gold: $2,016.68 (+$34.12, +1.72%)

⬆️ Resistance:  2060

⬇️ Support:  1940

M+ Online Technical Focus - 3 May 23

Scicom (MSC) Bhd: Leading BPO player

Trading Catalyst
• Regarded as one the leading business process outsourcing player and involves in digital solutions, e-commerce solutions and gov-tech solutions.
• Stepping up to engage in higher-value operations services such as social media support, text support, fulfilment and robotic automation.

• China’s border re-opening bodes well for the gov-tech solutions whereby SCICOM provides one-stop solution for visa processing for foreign students under the Education Malaysia Global Services (EMGS) programme.

• Technically, traders may anticipate for a potential breakout above RM1.12 to target the next resistances at RM1.17-1.20 with long term target set at RM1.22.

Technical View

(i) SCICOM (S: RM1.05, R: RM1.17-1.20, LT TP: RM1.22, CL: RM1.04)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI staged a rebound after recovering from the morning session’s losses as buying momentum kicked in after investors digested the sales of First Republic Bank. Nevertheless, sentiment is likely to remain cautious amid the persisted worries over the ongoing turmoil in the US banking sector and ahead of the US Fed’s interest rate decision. Commodities wise, the Brent crude oil plunged towards USD75 per barrel as fears over economic slowdown which has weighed on prices. The CPO price hovered above RM3,400, while the gold price climbed above USD2,000. 

Sector focus: With the gold prices crossed above USD2,000, investors may look out for short term trading within gold counters. On the other hand, fears over global uncertainties may add to selling momentum within the energy and technology sectors. Defensive sectors such as telco and utilities, as well as travelling related sectors might be in favour.

Stocks to watch:
Consumer: PWROOT, HUPSENG, CCK, TEOSENG, CAB
Healthcare-related: HARTA, TOPGLOV, SUPERMX
Financial Services: MBSB, ABMB, RCECAP

Construction: MRCB, WCEHB

Others: DRBHCOM, HARBOUR, SAMAIDEN, KGB, SCICOM

Source: M+ Online

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