M+ Online Morning Market Buzz - 7 Jun 23

Dow Jones: 33,573.28 pts (+10.42pts, +0.03%)
⬆️ Resistance:  34500
⬇️ Support:  32100

FBM KLCI: 1,383.17 pts (+1.91pts, +0.14%)
⬆️ Resistance:  1440
⬇️ Support:  1350

HSI Index: 19,099.28 pts (-9.22pts, -0.05%)
⬆️ Resistance:  19800
⬇️ Support:  17900

Crude Palm Oil: RM3,360 (RM44, +1.33%)
⬆️ Resistance:  3660
⬇️ Support:  3220

Brent Oil: $75.97 (-$0.74, -0.96%)
⬆️ Resistance:  80.40
⬇️ Support:  70.60

Gold: $1,963.54 (+$1.68, +0.09%)
⬆️ Resistance:  2030
⬇️ Support:  1900

M+ Online Technical Focus - 7 Jun 23
Bermaz Auto Bhd: Strengthening the EV segment

Trading Catalyst
• Principally involved in the distribution and provision of after-sales services and spare parts of 3 renowned marques in Malaysia namely, Mazda, Peugeot and Kia.
• Leveraging onto the tax duty exemption for EV6 from Kia, Peugeot e-2008 EV and the Mazda MX30 EV as the government continues to adopt policy friendly measures towards the green sector.
• Aiming to expand electric vehicle (EV) segment with the addition of a Chinese EV brand to its portfolio.
• Technically, price has formed a short-term consolidation breakout above RM2.19 and may trend higher to target the next resistances at RM2.28-2.38 with long term target set at RM2.50.

Technical View

(i) BAUTO (S: RM2.10, R: RM2.28-2.38, LT TP: RM2.50, CL: RM2.09)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI bounced from losses to end on a positive note as bargain hunting activities emerged in the final trading hour on selected plantation and Petronas-related heavyweights. Meanwhile, on Wall Street, both the S&P 500 and Nasdaq are still positive biased, charging towards their respective year-to-date highs, we believe the positive sentiment may spill over to the local bourse. Nevertheless, investors may remain on the sidelines, while awaiting the US Fed interest rate decision next week. Commodities wise, the Brent crude oil saw a slight pullback towards USD75, while the CPO price hovered above RM3,350. 

Sector focus: The technology sector may follow the overnight performance on Wall Street. Also, the plantation sector may shine on the back of firmer crude palm oil prices above RM3,300 in the anticipation of improving shipments moving forward due to rising demand environment.

Stocks to watch:
Plantation: TAANN, HSPLANT, HARNLEN
Property: EWINT, ECOWLD, PARAMON, SIMEPROP 
Automotive: BAUTO, MBMR
Solar-related: SLVEST, SUNVIEW, SAMAIDEN
Others: PADINI, INFOM, VOLCANO, SMRT, MCEMENT, SUNREIT

Source: M+ Online

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