M+ Online Morning Market Buzz - 17 Jul 23

Dow Jones: 34,509.03 pts (+113.89pts, +0.33%)
⬆️ Resistance: 35300
⬇️ Support: 33100

FBM KLCI: 1,412.09 pts (+15.86pts, +1.14%)
⬆️ Resistance: 1450
⬇️ Support: 1360

HSI Index: 19,413.78 pts (+63.16pts, +0.33%)
⬆️ Resistance: 20000
⬇️ Support: 18100

Crude Palm Oil: RM3,899 (+RM19, +0.49%)
⬆️ Resistance: 4070
⬇️ Support: 3730

Brent Oil: $79.87 (-$1.49, -1.83%)
⬆️ Resistance: 83.40
⬇️ Support: 75.90

Gold: $1,955.21 (+$3.16, +0.16%)
⬆️ Resistance: 2010
⬇️ Support: 1880

M+ Online Technical Focus - 17 Jul 23
Sunny Optical Technology (Group) Co Ltd: Leveraging onto rapid technological advancement

Trading Catalyst
• Founded in 1984 and has grown into one of the leading manufacturers of integrated optical components and products manufacturer in the world.
• Riding onto the rapid advancement in autonomous driving and the upgrade in specifications of smartphone camera.
• Technological advancement will continue to drive growth and we gather that the shipment volume of handset lens sets increased 25.8% YoY to 91.0m units.
• Technically, traders may anticipate for a potential breakout above HKD83.00 to target the next resistances at HKD90.00-97.00 with long term target set at HKD115.00.

Technical View

(i) SUNNY OPTICAL (S: HKD71.00, R: HKD90.00-97.00, LT TP: HKD115.00, CL: HKD70.00)

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

Source: Bloomberg, M+ Online

Economic Releases For The Week (17/7/2023-21/7/2023):

17/7/2023
CN - China's 2Q23 GDP Growth Rate, 10.00AM
CN - China's Industrial Production, 10.00AM
CN - China's Retail Sales, 10.00AM
CN - China's Unemployment Rate, 10.00AM

18/7/2023
US - United States' Retail Sales, 8.30PM
US - United States' Industrial Production, 9.15PM
US - United States' Manufacturing Production, 9.15PM

19/7/2023
UK - United Kingdom's Inflation Rate, 2.00PM
EU - Eurozone's Inflation Rate, 5.00PM

20/7/2023
US - United States' Existing Home Sales, 10.00PM

21/7/2023
JP - Japan's Inflation Rate, 7.30AM
UK - United Kingdom's Retail Sales, 2.00PM

Source: Bloomberg, M+ Online

Market update: With the key index re-claiming the 1,400 psychological level, we reckon that the recovery trend has turned more solid. We noticed that foreign funds have stepped up to purchase Malaysian equities (net buying of RM468.9m last Friday) and that could sustain the recovery trend, moving forward. Meanwhile, the lower liners may continue to capitalise onto the jubilant market sentiment as the calmer market conditions present an opportunity to nibble onto beaten down stocks. Looking ahead, the barrage of corporate earnings releases in the US will be in focus. Meanwhile, investors will also be keeping a close watch on the impending release of China’s 2Q23 GDP data today. Commodities wise, the Brent crude oil retreated below USD80, while the CPO remained above RM3,800.

Sector focus: After delivering 4.3% gains last Friday, the technology sector may be ripe for quick profit taking. The energy sector may also stage a mild pullback in tandem with the weakness in crude oil prices. Nevertheless, we continue to favour the plantation sector that is riding on the recovery in CPO prices.

Stocks to watch:
Plantation: BPLANT, HSPLANT, JTIASA, THPLANT
Property: EWEIN, EWINT, OSK
Technology: NATGATE, ECA, OPPSTAR
Financial Services: ABMB, CIMB, MAYBANK
Others: AME, MSC, DAYANG, PADINI, REDTONE

Source: M+ Online

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