M+ Online Morning Market Buzz - 17 May 23

Dow Jones: 33,012.14 pts (-336.46pts, -1.01%)
⬆️ Resistance:  34500
⬇️ Support:  32400

FBM KLCI: 1,432.50 pts (+6.13pts, +0.43%)
⬆️ Resistance:  1470
⬇️ Support:  1390

HSI Index: 19,978.25 pts (+7.12pts, +0.04%)
⬆️ Resistance:  20800
⬇️ Support:  19200

Crude Palm Oil: RM3,411.00 (RM-46.00, -1.33%)
⬆️ Resistance:  3920
⬇️ Support:  3330

Brent Oil: $74.91 (-$0.32, -0.43%)
⬆️ Resistance:  79.20
⬇️ Support:  72.10

Gold: $1,989.17 (-$27.32, -1.35%)
⬆️ Resistance:  2090
⬇️ Support:  1950

Source: Bloomberg, M+ Online

M+ Online Technical Focus - 17 May 23
Optimax Holdings Bhd: Visionary optometrist

Trading Catalyst
• Regarded as one of the leading eye specialist providers in Malaysia that is supported by 22 eye surgeons and 54 optometrists.
• On course towards its organic expansion through hiring additional surgeons and setting up more satellite clinics to improve geographical reach within the country.
• Reopening of international borders bode well for OPTIMAX for patients that seek for overseas medical treatment. 
• Technically, traders may anticipate for breakout above RM0.74, targeting the next resistances at RM0.77-0.795 with long term target at RM0.845.

Technical View

(i) OPTIMAX (S: RM0.71, R: RM0.77-0.795, LT TP: RM0.845, CL: RM0.705)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI rebounded to end the session higher, snapping the 5-day losing streak as bargain hunting activities emerged.  Overall, the US stock markets were weaker, awaiting news on the debt ceiling negotiations between congressional leaders and President Joe Biden. Meanwhile, Janet Yellen reiterated her concerns if the debt ceiling is not raised and the country may face defaulting as early as 1st June. Given the uncertainties in the US, we believe the selling pressure may spillover to the local front, capping the upside potential on the FBM KLCI. Commodities wise, the Brent crude oil price is hovering along USD 74-75, while the CPO fell below RM3,500. Gold price fell below USD2,000. 

Sector focus: With the negative performance from Wall Street, we opine that traders may focus on defensive stocks within the telco, utilities and consumer sectors. Meanwhile, we like the tourism and healthcare related stocks after the reopening of China borders since January.

Stocks to watch:
Healthcare: CENGILD, KOSSAN, OPTIMAX
Plantation: SIMEPLT, IOICORP, BPLANT
Oil & Gas: WASEONG, DAYANG, UZMA, VELESTO
Technology: VSTECS, GENETEC
Others: CAPITALA, LHI, MBSB, OWG, BAUTO, PPJACK

Source: M+ Online

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