M+ Online Morning Market Buzz - 3 Jul 23

Dow Jones: 34,407.60 pts (+285.18pts, +0.84%)
⬆️ Resistance: 35200
⬇️ Support: 33000

FBM KLCI: 1,376.68 pts (-11.69pts, -0.84%)
⬆️ Resistance: 1430
⬇️ Support: 1350

HSI Index: 18,916.43 pts (-17.93pts, -0.09%)
⬆️ Resistance: 19700
⬇️ Support: 18400

Crude Palm Oil: RM3,789 (+RM34, +0.91%)
⬆️ Resistance: 3910
⬇️ Support: 3560

Brent Oil: $75.41 (+$0.90, +1.21%)
⬆️ Resistance: 77.00
⬇️ Support: 70.20

Gold: $1,919.35 (+$0.88, +0.05%)
⬆️ Resistance: 1980
⬇️ Support: 1860

M+ Online Technical Focus - 3 Jul 23
Capital A Bhd: Boosted by strong revival in tourism activities

Trading Catalyst
• Transformed from one of the leading ASEAN airline service providers into a digital travel and lifestyle platform that leverages on data and technology.
• Re-activated 157 aircrafts at end-1Q23, which represents only 70.0% of the fleet in 2019 and is on track fully operates their aircrafts in 3Q23.
• Future growth will be driven by plans to operate 290 routes (25 routes more than 2019) that is in line with the strong revival in tourism activities across the globe.
• Technically, traders may anticipate for a potential consolidation breakout above RM0.81 to target the next resistances at RM0.855-0.88 with long term target set at RM1.00.

Technical View

(i) CAPITALA (S: RM0.75, R: RM0.855-0.88, LT TP: RM1.00, CL: RM0.745)

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

Economic Releases For The Week (3/7/2023-7/7/2023):

3/7/2023
JP - Japan's Jibun Bank Manufacturing PMI, 8.30AM
MY - Malaysia's S&P Global Manufacturing PMI, 8.30AM
CN - China's Caixin Manufacturing PMI, 9.45AM
EU - Eurozone's HCOB Manufacturing PMI, 4.00PM
UK - United Kingdom's S&P Global Manufacturing PMI, 4.30PM
US - United States' S&P Global Manufacturing PMI, 9.45PM
US - United States' ISM Manufacturing PMI, 10.00PM

5/7/2023
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 Global Services PMI, 4:00PM
EU - Eurozone's HCOB Global 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' Factory Orders, 10.00PM

6/7/2023
US - United States' FOMC Minutes, 2.00AM
MY - Malaysia's Bank Negara's Interest Rate Decision, 3.00PM
EU - Eurozone's Retail Sales, 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

7/7/2023
US - United States' Unemployment Rate, 8.30PM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI traded mostly in the red, dragged down by selling pressure in banking heavyweights following the mid-year institutional rebalancing. We reckon a rebound may take shape, taking cue from bargain hunting activities from the previous session pullback, while the calmer market sentiment on Wall Street may also lend strength to the local markets. Still, we remain cautious over the impending releases of manufacturing data to gauge the strength of the economy. Commodities wise, the Brent crude oil advanced to trade above USD75, while the CPO price advanced towards near RM3,800.

Sector focus: Investors may keep watch on technology-related stocks, taking cue from the strong performance delivered by Nasdaq overnight. Focus may also shift towards the commodities-related stocks (both plantation and oil & gas related companies) amid the stronger commodity prices. In the meantime, the weakness in the ringgit against the USD may buoy trading interest within the export-related stocks.

Stocks to watch:
Utilities: YTL, YTLPOWR, EDEN
Technology: FRONTKN, INARI, SFPTECH, RGTECH
REIT: IGBREIT, YTLREIT, HEKTAR
Consumer: MSM, PTRB, ECOMATE, PADINI
Others: FOCUSP, CAPITALA, MCEMENT, TAANN, EWINT

Source: M+ Online

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