M+ Online Morning Market Buzz - 15 May 23

Dow Jones: 33,300.62 pts (-8.89pts, -0.03%)
⬆️ Resistance:  34500
⬇️ Support:  32300

FBM KLCI: 1,422.92 pts (-2.26pts, -0.16%)
⬆️ Resistance:  1470
⬇️ Support:  1400

HSI Index: 19,627.24 pts (-116.55pts, -0.59%)
⬆️ Resistance:  20700
⬇️ Support:  19300

Crude Palm Oil: RM3,648 (+RM45, +1.25%)
⬆️ Resistance:  3920
⬇️ Support:  3430

Brent Oil: $74.17 (-$0.81, -1.08%)
⬆️ Resistance:  79.20
⬇️ Support:  69.90

Gold: $2,010.77 (-$4.28, -0.21%)
⬆️ Resistance:  2110
⬇️ Support:  1960

M+ Online Technical Focus - 15 May 23
My E.G. Services Bhd: Contracts extensions ensure earnings sustainability

Trading Catalyst
• Regarded as a concessionaire for Malaysian Electronic-Government (E-Government) MSC flagship application.
• Recent contract extensions to handle JPJ-related services and to facilitate applications for temporary employment visit passes (PLKS) for foreign workers may ensure earnings sustainability.
• May leverage onto the Malaysian government’s move to implement blockchain technology to handle certificate of origins (COO) for Malaysian exports into China.
• Technically, traders may anticipate for a potential breakout above RM0.80 to target the next resistances at RM0.855-0.915 with long term target at RM0.965."

Technical View

(i) MYEG (S: RM0.74, R: RM0.855-0.915, LT TP: RM0.965, CL: RM0.735)

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

Economic Releases For The Week (15/5/2023-19/5/2023):

15/5/2023
JP - Japan's Producer Price Index, 7:50AM
EU - Eurozone's Industrial Production, 5:00PM

16/5/2023
CN - China's Industrial Production, 10:00AM
CN - China's Retail Sales, 10:00AM
CN - China's Unemployment Rate, 10:00AM
UK - United Kingdom's Unemployment Rate, 2:00PM
EU - Eurozone's 1Q23 GDP Growth Rate (2nd Estimate), 5.00PM
EU - Eurozone's ZEW Economic Sentiment Index, 5:00PM
US - United States' Retail Sales, 8:30PM
US - United States' Industrial Production, 9:15PM
US - United States' Manufacturing Production, 9:15PM

17/5/2023
JP - Japan's 1Q23 GDP Growth Rate (Preliminary) , 7.50AM
JP - Japan's Industrial Production, 12:30PM
EU - Eurozone's Inflation Rate, 5:00PM

18/5/2023
US - United States' Existing Home Sales, 10:00PM

19/5/2023
JP - Japan's Machinery Orders, 8:30AM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI posted a fourth-session decline with selected banking and industrial products & services heavyweights being targeted and led the losses. The overall market sentiment may remain vulnerable amid global economic concern, while investors await the Eurozone’s inflation rate this week. Meanwhile, traders are focusing on the debt ceiling negotiations this week. Although we expect that the bargain hunting activities may kick in on the local bourse amid releasing of more earnings reports, the upside could be limited in the near term. Commodities wise, the Brent crude oil price hovered above USD74, while the CPO traded slightly below RM3,650. Gold price continued to stay above USD2,000. 

Sector focus: Investors may favour sectors like telecommunication, utilities and poultry amid weak sentiment on the global front; the latter might be heading higher on the back of the speculation of price ceiling removal for chickens and eggs. Meanwhile, gold related counters may gain traction given the solid commodities prices amid the uncertain market environment.

Stocks to watch:
Consumer: TEOSENG, CAB, LHI, PWF
Utilities: YTLPOWR, RANHILL
Plantation: BPLANT, FGV
Aviation: AAX, CAPITALA
Others: SMRT, MCEHLDG, DAYANG, PELIKAN, MYEG, KTB, OPCOM, PHARMA

Source: M+ Online

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