M+ Online Morning Market Buzz - 10 Jul 23

Dow Jones: 33,734.88 pts (-187.38pts, -0.55%)
⬆️ Resistance: 35200
⬇️ Support: 33100

FBM KLCI: 1,377.67 pts (-8.28pts, -0.60%)
⬆️ Resistance: 1430
⬇️ Support: 1360

HSI Index: 18,365.70 pts (-167.35pts, -0.90%)
⬆️ Resistance: 19900
⬇️ Support: 18000

Crude Palm Oil: RM3,834 (-RM77, -1.97%)
⬆️ Resistance: 4080
⬇️ Support: 3750

Brent Oil: $78.47 (+$1.95, +2.55%)
⬆️ Resistance: 80.20
⬇️ Support: 73.10

Gold: $1,925.05 (+$14.15, +0.74%)
⬆️ Resistance: 1980
⬇️ Support: 1870

M+ Online Technical Focus - 10 Jul 23
T7 Global Bhd: Solid orderbook ensures earnings growth trajectory

Trading Catalyst
• Regarded as an integrated oil and gas solutions provider with presence across international markets and diversified into aerospace and construction through strategic acquisitions and smart partnerships.
• Equipped with RM2.50bn of outstanding orderbook, which represents an orderbook-to-cover ratio of 6.9x against FY22 revenue of RM363.0m that will sustain earnings visibility over the next 10 years.
• New work orders will be backed by Petroliam Nasional Bhd (PETRONAS) move to ramp up their CAPEX to RM300.0bn for 2023-2027.
• Technically, price has formed a short-term breakout-pullback-continuation pattern above EMA20 and may target the next resistances at RM0.475-0.50 with long term target set at RM0.55.

Technical View

(i) T7GLOBAL (S: RM0.42, R: RM0.475-0.50, LT TP: RM0.55, CL: RM0.415)

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

Economic Releases For The Week (10/7/2023-14/7/2023):

10/7/2023
CN - China's Inflation Rate, 9.30AM
CN - China's Producer Price Index, 9.30AM
MY - Malaysia's Unemployment Rate, 12.00PM

11/7/2023
UK - United Kingdom's Unemployment Rate, 2.00PM
EU - Eurozone's ZEW Economic Sentiment Index, 5.00PM

12/7/2023
JP - Japan's Machinery Orders, 7.50AM
JP - Japan's Producer Price Index, 7.50AM
MY - Malaysia's Industrial Production, 12.00PM
MY - Malaysia's Retail Sales, 12.00PM
US - United States' Inflation Rate, 8.30PM

13/7/2023
UK - United Kingdom's Manufacturing Production, 2.00PM
UK - United Kingdom's Industrial Production, 2.00PM
EU - Eurozone's Industrial Production, 5.00PM
US - United States' Producer Price Index, 8.30PM

14/7/2023
JP - Japan's Industrial Production, 12.30PM
US - United States' Michigan Consumer Sentiment (Preliminary), 10.00PM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI were beset by another round of selling activities after lingering mostly in the negative territory for most of the trading session, whilst foreign funds stepped up in their net selling position. For now, investors will be watching the impending release of Malaysia’s unemployment rate. The lower liners may undergo a consolidation after delivering a solid performance last week. While the recovery is still in place, we expect the upside may be limited amid quick profit taking activities. Meanwhile, we reckon that the focus will shift towards the upcoming barrage of corporate earnings in the US. Commodities wise, the Brent crude oil recovered above USD78, while the CPO price slipped towards near RM3,800.

Sector focus: We continue to favour the defensive-related sectors such as REIT and utilities amid the volatile environment. The recovery in crude oil prices may lend some support to the energy sector. On the flipside, the plantation sector may remain downbeat in view of the softer CPO prices.

Stocks to watch:
REIT: YTLREIT, UOAREIT, PAVREIT, KIPREIT
Oil & Gas: MHB, T7GLOBAL, CARIMIN, WASCO
Technology: GTRONIC, PENTA, GENETEC
Construction: WCEHB, MNHLDG, AZRB
Others: LEESK, HSSEB, SCICOM, SMRT

Source: M+ Online

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