M+ Online Morning Market Buzz - 5 Jul 23

Dow Jones: 34,418.47 pts (+10.87pts, +0.03%)
⬆️ Resistance:  35200
⬇️ Support:  33100

FBM KLCI: 1,392.49 pts (-3.40pts, -0.24%)
⬆️ Resistance:  1430
⬇️ Support:  1350

HSI Index: 19,415.68 pts (+109.09pts, +0.57%)
⬆️ Resistance:  19900
⬇️ Support:  18500

Crude Palm Oil: RM3,936 (+RM53, +1.36%)
⬆️ Resistance:  4080
⬇️ Support:  3590

Brent Oil: $76.25 (+$1.60, +2.14%)
⬆️ Resistance:  78.20
⬇️ Support:  70.20

Gold: $1,925.48 (+$2.29, +0.12%)
⬆️ Resistance:  1970
⬇️ Support:  1860

M+ Online Technical Focus - 5 Jul 23
ECA Integrated Solution Bhd: Leveraging onto global transitioning towards automation

Trading Catalyst
• Started off since 1993 and has evolved into one of the leading design and manufacturer for automation solution providers.
• Automated test equipment segment will ride onto more repeat orders from EV-related projects.
• Demand to be supported by the global transitioning towards automation as businesses strive to maintain competitiveness.
• Technically, price has formed a short-term consolidation breakout above RM0.89 and may target the next resistances at RM0.955-1.00 with long term target set at RM1.13.
 
Technical View

(i) ECA (S: RM0.825, R: RM0.955-1.00, LT TP: RM1.13, CL: RM0.82)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI shrugged off most of its intraday losses as profit taking activities emerged after a brief rebound last week. We reckon that further recovery is in store with the key index looking to take another jab towards 1,400. The lower liners may continue to capitalise onto the calmer market condition on the back of rotational play. Meanwhile, investors’ attention may shift towards the upcoming FOMC minutes meeting mid-week to provide further clues over the pace of future interest rate hikes. Commodities wise, the Brent crude oil tipped above USD76 on expectations of further production cuts in anticipation of slower demand from China, while the CPO price maintained above RM3,900. 

Sector focus: The energy sector may take cue from the stability in crude oil prices. We continue to favour the technology sector that is riding onto the recovery wave, tracking the positive developments on Nasdaq recently. Meanwhile, the telecommunications & media sector may be boosted by CelcomDigi’s launch of MY5G Series to accelerate 5G adoption.

Stocks to watch:
Technology: ECA, PENTA, GTRONIC, AWANTEC
Property: CHHB, IWCITY, OSK
Construction: WCEHB, TCS, EKOVEST
Oil & Gas: YINSON, COASTAL, CARIMIN
Others: PWF, EG, PPJACK, LEESK, SDS, ECOMATE

Source: M+ Online

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