M+ Online Morning Market Buzz - 6 Jun 23

Dow Jones: 33,562.86 pts (-199.90pts, -0.59%)
⬆️ Resistance:  34500
⬇️ Support:  32000

FBM KLCI: 1,381.26 pts (-1.75pts, -0.13%)
⬆️ Resistance:  1440
⬇️ Support:  1350

HSI Index: 19,108.50 pts (+158.56pts, +0.84%)
⬆️ Resistance:  19600
⬇️ Support:  17900

Crude Palm Oil: RM3,381 (RM102, +3.11%)
⬆️ Resistance:  3660
⬇️ Support:  3220

Brent Oil: $76.59 (+$0.46, +0.60%)
⬆️ Resistance:  80.40
⬇️ Support:  70.60

Gold: $1,961.86 (+$13.99, +0.72%)
⬆️ Resistance:  2030
⬇️ Support:  1900

M+ Online Technical Focus - 6 Jun 23
SFP Tech Holdings Bhd: Expansion on the cards

Trading Catalyst
• One-stop automated equipment solution provider with key clients predominantly in the semiconductor, electrical & engineering and solar photovoltaic industries.
• To expand production capacity through the construction of Plant 3 and addition of 41 new numerical control milling machines and over the next 3 years.
• Proposed to undertake 2 bonus shares for every 1 existing share held as part of their efforts to reward existing shareholders.
• Technically, price has established a short-term breakout above RM2.47, targeting the next resistances at RM2.63-2.75 with long term target set at RM2.94.

Technical View

(i) SFPTECH (S: RM2.35, R: RM2.63-2.75, LT TP: RM2.94, CL: RM2.34)

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

Economic Releases For The Week (5/6/2023-9/6/2023):

05/06/2023
JP - Japan's Jibun Bank Services PMI, 8:30AM
JP - Japan's Jibun Bank Composite PMI, 8:30AM
CN - China's Caixin Services PMI, 9:45AM
CN - China's Caixin Composite PMI, 9:45AM
EU - Eurozone's HCOB Services PMI, 4:00PM
EU - Eurozone's HCOB Composite PMI, 4:00PM
UK - United Kingdom's S&P Global Services PMI, 4:30PM
UK - United Kingdom's S&P Global Composite PMI, 4:30PM
EU - Eurozone's Producer Price Index, 5:00PM
US - United States' S&P Global Services PMI, 9:45PM
US - United States' S&P Global Composite PMI, 9:45PM
US - United States' ISM Services PMI, 10:00PM
US - United States' Factory Orders, 10:00PM

06/06/2023
EU - Eurozone's Retail Sales, 5:00PM

08/06/2023
JP - Japan's 1Q23 GDP Growth Rate, 7:50AM
EU - Eurozone's 1Q23 GDP Growth Rate (3rd Est), 5.00PM

09/06/2023
CN - China's Inflation Rate, 9:30AM
CN - China's Producer Price Index, 9:30AM
MY - Malaysia's Unemployment Rate, 12:00PM
MY - Malaysia's Industrial Production, 12:00PM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI remained bearish as investors selling pressure in banking and selected consumer heavyweights, while investors piled into small and mid-cap stocks. We deem the pullback on Wall Street overnight as a healthy consolidation, while the local bourse may track regional markets’ uptrend move and bargain hunting activities may emerge. Investors may monitor Japan’s and Eurozone’s GDP, as well as China’s inflation rate to gauge the aggressiveness of global interest rate hikes. Commodities wise, the Brent crude oil traded above US76 per barrel, while the CPO traded above RM3,350. 

Sector focus: The financial sector may see a rebound following last week’s selldown. Besides, renewable energy could continue to be the trend in line with government’s initiative to expand renewable energy use in Malaysia. Besides, the property related counters may shine amid optimism over economic recovery.  

Stocks to watch:
Technology: SFPTECH, INARI, AWANTEC, EFORCE
Oil & Gas: PETRONM, CARIMIN, DELEUM
Transportation & Logistics: WPRTS, AIRPORT, FM
Telecommunication & Media: CDB, ASTRO, STAR
Consumer: TEOSENG, AEON, PWROOT
Others: CAPITALA, YBS

Source: M+ Online

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