M+ Online Morning Market Buzz - 24 May 23

Dow Jones: 33,055.51 pts (-231.07pts, -0.69%)
⬆️ Resistance:  34100
⬇️ Support:  32500

FBM KLCI: 1,411.54 pts (-7.46pts, -0.53%)
⬆️ Resistance:  1460
⬇️ Support:  1400

HSI Index: 19,431.25 pts (-246.92pts, -1.25%)
⬆️ Resistance:  20300
⬇️ Support:  19200

Crude Palm Oil: RM3,415 (+RM37, +1.10%)
⬆️ Resistance:  3780
⬇️ Support:  3480

Brent Oil: $76.84 (+$0.85, +1.12%)
⬆️ Resistance:  79.00
⬇️ Support:  73.20

Gold: $1,975.23 (+$3.32, +0.17%)
⬆️ Resistance:  2070
⬇️ Support:  1970

M+ Online Technical Focus - 24 May 23
Solarvest Holdings Bhd: Gearing towards sustainable energy

Trading Catalyst
• One of the leading solar turnkey engineering, procurement, construction and commissioning (EPCC) service provider with established track record in Large Scale Solar PV, residential, commercial and industrial properties projects.
• Unbilled orderbook of c.RM600.0m will provide earnings growth over the next 2 years.
• To leverage onto the 600.0MW quota of solar PV assets under the Corporate Green Power Programme (CGPP) and expand its regional presence.
• Technically, price has experienced a flag-formation breakout above RM0.985 and may advance to target the next resistance at RM1.04-1.09, with long term target at RM1.17.

Technical View

(i) SLVEST (S: RM0.94, R: RM1.04-1.09, LT TP: RM1.17, CL: RM0.935)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI slid deeper into the red in the afternoon session as investors watched the progress of the US debt ceiling talk. We believe investors may remain jittery as the debt ceiling discussions appeared to yield little progress. Do note that Janet Yellen commented that the “hard deadline” for raising the debt ceiling will be on 1st of June. Meanwhile, investors may focus on fundamentally solid companies amid the earnings season on the local bourse. Commodities wise, the Brent crude oil traded above USD76, while the CPO price hovered above RM3,400. Gold price remained below USD2,000. 

Sector focus: The semiconductor sector could be one of the sectors under the limelight following the government’s plans to strengthen Malaysia’s semiconductor system in the hope to achieve 15.0% market share by 2030. Besides, investors may favour telecommunications and utilities sectors prior to the release of their results.

Stocks to watch:
Healthcare: HARTA, KOSSAN, OPTIMAX
REIT: AXREIT, PAVREIT, KIPREIT
Oil & Gas: COASTAL, DIALOG
Renewable Energy: SLVEST, SUNVIEW
Others: REDTONE, RCECAP, CTOS, HARNLEN, ECOMATE, FOCUSP, MALAKOF, LEFORM

Source: M+ Online

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