M+ Online Morning Market Buzz - 26 Jun 23

Dow Jones: 33,727.43 pts (-219.28pts, -0.65%)
⬆️ Resistance:  35300
⬇️ Support:  33000

FBM KLCI: 1,390.89 pts (-3.78pts, -0.27%)
⬆️ Resistance:  1440
⬇️ Support:  1350

HSI Index: 18,889.97 pts (-328.38pts, -1.71%)
⬆️ Resistance:  20600
⬇️ Support:  18500

Crude Palm Oil: RM3,620 (+RM58, +1.63%)
⬆️ Resistance:  3870
⬇️ Support:  3450

Brent Oil: $73.85 (-$0.29, -0.39%)
⬆️ Resistance:  78.80
⬇️ Support:  70.70

Gold: $1,921.20 (+$7.19, +0.38%)
⬆️ Resistance:  2010
⬇️ Support:  1880

M+ Online Technical Focus - 26 Jun 23
Malaysia Smelting Corporation Bhd: Riding on recovery in tin prices

Trading Catalyst
• Regarded as one of the world’s leading integrated producers of tin metal and tin-based products.
• In the midst of relocating and fully commissioning its new smelting plant in Pulau Indah, Selangor, from Butterworth, Penang by mid-2024 in bid to improve operational efficiency.
• Tin futures recovered above USD25,000/tonne due to expectations of shortages in global tin markets ahead of the upcoming prohibition of tin mining in Myanmar's Wa region and Indonesia's export ban on tin ingots bodes well.
• Technically, traders may anticipate for a potential breakout above RM2.08, to target the resistances at RM2.17-2.33 with long term target set at RM2.50.
 
Technical View

(i) MSC (S: RM1.90, R: RM2.17-2.33, LT TP: RM2.50, CL: RM1.89)

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

Economic Releases For The Week (26/6/2023-30/6/2023):

27/06/2023
MY - Malaysia's Producer Price Index, 12:00PM
US - United States' New Home Sales, 10:00PM

29/06/2023
JP - Japan's Retail Sales, 7:50AM
JP - Japan's Consumer Confidence, 1:00PM
EU - Eurozone's Services Sentiment, 5:00PM
EU - Eurozone's Consumer Confidence, 5:00PM
EU - Eurozone's Economic Sentiment, 5:00PM
EU - Eurozone's Industrial Sentiment, 5:00PM
US - United States' 1Q23 GDP Growth Rate, 8:30PM
US - United States' Pending Home Sales, 10.00PM

30/06/2023
JP - Japan's Unemployment Rate, 7.30AM
CN - China's NBS Manufacturing PMI, 9.30AM
CN - China's NBS Non-Manufacturing PMI, 9.30AM
EU - Eurozone's Unemployment Rate, 5.00PM
US - United States' Chicago PMI, 9.45PM
US - United States' Michigan Consumer Sentiment, 10.00PM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI snapped a 3-day winning streak, along with the regional peers as worries over potential slowdown in the global economic growth resurfaced following the US Fed Chair comments last week. This week, we believe the market will continue to monitor economic data from Japan, the US and China for further clarity in the current state of the economy. Meanwhile, the pullback on Wall Street last Friday, coupled with the bigger-than-expected rate hike from the Bank of England, as well as Japanese inflation rising faster-than-expectation may weigh on the market sentiment. Commodities wise, the Brent crude oil traded above USD73 per barrel, while the CPO price hovered above RM3,600. 

Sector focus: Investors may look into the plantation stocks as FCPO stayed above RM3,600. Besides, traders may shift their focus back to sectors such as telecommunications and utilities as the recent rally on Wall Street appeared to be running out of steam. Meanwhile, we remain positive in the travelling related counters.

Stocks to watch:
Construction: GAMUDA, WCEHB, ADVCON, TCS
Plantation: SIMEPLT, BPLANT, RSAWIT 
Utilities: YTLPOWR, YTL, TENAGA
Technology: FRONTKN, INFOM
Others: HUMEIND, IFCAMSC, CYPARK, MSM, UZMA, SCGM, MSC

Source: M+ Online

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