M+ Online Morning Market Buzz - 10 May 23

Dow Jones: 33,561.81 pts (-56.88pts, -0.17%)
⬆️ Resistance:  34500
⬇️ Support:  32300

FBM KLCI: 1,432.63 pts (-1.11pts, -0.08%)
⬆️ Resistance:  1470
⬇️ Support:  1390

HSI Index: 19,867.58 pts (-429.45pts, -2.12%)
⬆️ Resistance:  20800
⬇️ Support:  19200

Crude Palm Oil: RM3,762 (-RM45, -1.18%)
⬆️ Resistance:  3920
⬇️ Support:  3280

Brent Oil: $77.44 (+$0.43, +0.56%)
⬆️ Resistance:  79.10
⬇️ Support:  69.90

Gold: $2,034.56 (+$13.40, +0.66%)
⬆️ Resistance:  2110
⬇️ Support:  1960

M+ Online Technical Focus - 10 May 23
Guan Chong Bhd: Robust consumption may lift growth prospects

Trading Catalyst
• Ranked as the fourth largest cocoa grinder in the world with total cocoa processing capacity of 337,000MT p.a.
• Demand will be continues to be anchored by re-opening of international borders which may boost consumption of food & beverages, including chocolates.
• Real private consumption expanded 11.0% YoY in 2022, suggesting the consumer spending remain robust despite the relatively high inflation environment.
• Technically, price has formed a breakout-pullback-continuation pattern and may trend higher to target the next resistances at RM2.76-2.85 with long term target at RM3.00.

Technical View

(i) GCB (S: RM2.51, R: RM2.76-2.85, LT TP: RM3.00, CL: RM2.50)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI booked marginal losses amid tepid sentiment prior to the release of the US inflation data. Investors are likely to stay in a cautious mode following a mild pullback on Wall Street overnight. Closer to home, the local market may expect a gradual recovery with the foreign investors turned net buyer (5-day averaged net buying: RM70.4m) for the third consecutive day. Commodities wise, the Brent crude oil price advanced towards USD77 per barrel, while the CPO price hovered above RM3,750. Gold price stood above USD2,000. 

Sector focus: The renewable energy (RE) sector may take the center stage after the government lifted the 18-month ban on renewable energy export and raised the 2050 RE generation capacity target to 70% of the nation’s total. On the other hand, the health care sector may continue its upward tone after a strong buying interest following HARTA’s result yesterday.

Stocks to watch:
Healthcare: TOPGLOV, SUPERMX, COMFORT, PHARMA
Construction: GAMUDA, SUNCON
Consumer: PWROOT, GCB
Property: IOIPG, EWINT
Others: GESHEN, CDB, AAX, CTOS, KGB, TUNEPRO, UNITRAD, REDTONE

Source: M+ Online

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