M+ Online Morning Market Buzz - 22 May 23

Dow Jones: 33,426.63 pts (-109.28pts, -0.33%)
⬆️ Resistance:  34500
⬇️ Support:  32400

FBM KLCI: 1,428.54 pts (+0.50pts, +0.04%)
⬆️ Resistance:  1470
⬇️ Support:  1390

HSI Index: 19,450.57 pts (-276.68pts, -1.40%)
⬆️ Resistance:  20500
⬇️ Support:  19000

Crude Palm Oil: RM3,481 (RM89, +2.62%)
⬆️ Resistance:  3780
⬇️ Support:  3310

Brent Oil: $75.58 (-$0.28, -0.37%)
⬆️ Resistance:  79.20
⬇️ Support:  72.10

Gold: $1,977.81 (+$20.26, +1.03%)
⬆️ Resistance:  2090
⬇️ Support:  1920

M+ Online Technical Focus - 22 May 23
Pavilion Real Estate Investment Trust: Rising occupancy rate and rental income drives growth

Trading Catalyst
• Ranked as the largest Malaysia retail mall in terms of valuations with portfolio consist of Pavilion Kuala Lumpur Mall, Elite Pavilion Mall, Intermark Mall, Da Men Mall and Pavilion Tower.
• With the traffic footfall reaching the pre-Covid-19 level in 2022, further improvement will be supported by “revenge spending” from Chinese tourists.
• Impending acquisition of Pavilion Bukit Jalil is expected to be completed by end-May 2023 and this will be earnings accretive over the long run.
• Technically, traders may anticipate for a potential short-term breakout above RM1.32, targeting the next resistances at RM1.37-1.44 with long term target set at RM1.50.

Technical View

(i) PAVREIT (S: RM1.25, R: RM1.37-1.44, LT TP: RM1.50, CL: RM1.24)

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

Economic Releases For The Week (22/5/2023-26/5/2023):

23/05/2023
US - United States' New Home Sales, 10:00PM

24/05/2023
UK - United Kingdom's Inflation Rate, 2:00PM

25/05/2023
US - United States' FOMC Minutes, 2.00AM
US - United States' 1Q23 GDP Growth Rate (2nd Estimate), 8.30PM
US - United States' Pending Home Sales, 10.00PM

26/05/2023
MY - Malaysia's Inflation Rate, 12:00PM
UK - United Kingdom's Retail Sales, 2:00PM
US - United States' Michigan Consumer Sentiment (Final), 10.00PM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI ended marginally higher on the back of final-hour bargain hunting activities. On the global front, investors may remain cautious despite the Fed Chair Jerome Powell’s comment on less-aggressive interest rate hike, as worries surfaced following a pause on debt ceiling negotiations. Meanwhile, all eyes will be on the US FOMC Minutes as well as Malaysia’s inflation rate this week. Commodities wise, the Brent crude oil traded above USD75 per barrel mark, while the CPO price hovered just below RM3,500. Gold price stayed below USD2,000. 

Sector focus: The global cautious sentiment may spill over to the local front. Hence, investors may favour telecommunications, utilities, green energy and consumer related stocks. Meanwhile, sectors such as technology may see some pull back after Wall Street mild retracement.

Stocks to watch:
Construction: WCEHB, EKOVEST, IJM 
REIT: PAVREIT, YTLREIT, SUNREIT
Consumer: AEON, CAB, CCK, LHI
Technology: AWANTEC, LGMS, INFOM, KRONO
Others: YTLPOWR, CAPITALA, MNHLDG, SASBADI, KPS

Source: M+ Online

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