M+ Online Morning Market Buzz - 28 Jun 23

Dow Jones: 33,926.74 pts (+212.03pts, +0.63%)
⬆️ Resistance: 35300
⬇️ Support: 33000

FBM KLCI: 1,386.74 pts (-3.14pts, -0.23%)
⬆️ Resistance: 1440
⬇️ Support: 1360

HSI Index: 19,148.13 pts (+354.00pts, +1.88%)
⬆️ Resistance: 20500
⬇️ Support: 18400

Crude Palm Oil: RM3,680 (+RM5, +0.14%)
⬆️ Resistance: 3860
⬇️ Support: 3450

Brent Oil: $72.50 (-$1.68, -2.26%)
⬆️ Resistance: 78.80
⬇️ Support: 70.70

Gold: $1,913.69 (-$9.57, -0.50%)
⬆️ Resistance: 2000
⬇️ Support: 1880

M+ Online Technical Focus - 28 Jun 23
Jaya Tiasa Holdings Bhd: Driven by higher CPO prices

Trading Catalyst
• Started off in 1987 as a wood processing company and has since diversified into palm oil business in 2002 with now close to 70,000.0-ha of planted area in Sarawak.
• Earnings growth will be supported by the healthy tree age profile with 97% of its CPO planted land comprises prime trees and 3% of young mature trees.
• CPO prices to remain stable, anchored by stronger demand from India that has taken advantage of the recent low prices to ramp up imports in June 2023.
• Technically, price has formed a short-term flag-formation breakout above RM0.675 and may target the next resistances at RM0.71-0.74 with long term target at RM0.80.

Technical View

(i) JTIASA (S: RM0.645, R: RM0.71-0.74, LT TP: RM0.80, CL: RM0.64)

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

Source: Bloomberg, M+ Online

Market update: Final-hour profit taking activities pulled the FBM KLCI into its third-session losses despite an overall positive performance across the regional markets after Beijing commented on policies to support the economic growth going forward. We believe a turnaround on Wall Street overnight after the consumer confidence for June hit a 17-month high will support bargain hunting activities on the local bourse. Commodities wise, the Brent crude oil is trading below USD73, while the CPO price hovered above RM3,650.

Sector focus: We believe the rebound on Wall Street may provide buying momentum for the local technology stocks. Besides, we remained positive stance within the travel related sectors. On the other hand, the energy sector may anticipate selling pressure following the lower price movements in crude oil prices.

Stocks to watch:
Construction: GAMUDA, IJM, AZRB, WCEHB
Plantation: BPLANT, JTIASA, THPLANT
Property: MKH, ECOWLD, MAHSING
Healthcare: KPJ, UMC, TMCLIFE
Others: HUMEIND, CARIMIN, RCECAP, SFPTECH

Source: M+ Online

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.