M+ Online Morning Market Buzz - 20 Jul 23

Dow Jones: 35,061.21 pts (+109.28pts, +0.31%)
⬆️ Resistance: 36000
⬇️ Support: 33700

FBM KLCI: 1,403.03 pts (-3.07pts, -0.22%)
⬆️ Resistance: 1450
⬇️ Support: 1370

HSI Index: 18,952.31 pts (-63.41pts, -0.33%)
⬆️ Resistance: 20000
⬇️ Support: 18400

Crude Palm Oil: RM3,895 (-RM35, -0.89%)
⬆️ Resistance: 4050
⬇️ Support: 3740

Brent Oil: $79.46 (-$0.17, -0.21%)
⬆️ Resistance: 83.40
⬇️ Support: 76.70

Gold: $1,976.64 (-$2.08, -0.11%)
⬆️ Resistance: 2030
⬇️ Support: 1910

M+ Online Technical Focus - 20 Jul 23
PWF Corporation Bhd: Lifting of poultry export ban a boon

Trading Catalyst
• Regarded as an integrated poultry player with business activities spanning across feed manufacturing, broiler, breeder and layer farming, poultry processing, and trading of raw material."
• Partnership with L.A. Chicken brand provides with an opportunity to expand into the downstream food & beverage industry.
• Lifting of ban on the export of chicken from 1st July 2023 will be a boon for the general poultry industry to be able to generate additional revenue from the export market.
• Technically, price has formed a short-term breakout-pullback-continuation and may charge higher to target the next resistances at RM0.765-0.80 with long term target set at RM0.85.

Technical View

(i) PWF (S: RM0.70, R: RM0.765-0.80, LT TP: RM0.85, CL: RM0.695)

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

Source: Bloomberg, M+ Online

Market update: Further pullback took place as investors retreated to the sidelines prior to the mid-week break. After 2-days of pullback, bargain hunting activities may return to the fore as the key index may play catch-up with the positive developments on Wall Street in the recent days. Meanwhile, the lower liners may remain upbeat in view of the improved market sentiment. Meanwhile, the corporate earnings releases in both the US and Hong Kong will remain in focus. Commodities wise, the Brent crude oil hovered below USD80, while the CPO consolidated around RM3,900.

Sector focus: We reckon that Geely’s pledge to invest USD10.0bn to develop an automotive manufacturing hub at Tanjung Malim will be a boon for automotive-related players. The positive developments on Nasdaq overnight may transpire into improved trading activities within the technology sector. On the other hand, the energy sector may likely remain slightly downbeat in view that Brent oil prices slipped below USD80.

Stocks to watch:
Property: MKH, SPSETIA, ECOWLD, OSK
Plantation: BPLANT, HSPLANT, TAANN
Technology: PENTA, ATECH, FRONTKN
Construction: AME, KITACON, GAMUDA
Others: ECOMATE, THETA, PWF

Source: M+ Online

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