M+ Online Morning Market Buzz - 24 Jul 23

Dow Jones: 35,227.69 pts (+2.51pts, +0.01%)
⬆️ Resistance:  36100
⬇️ Support:  33800

FBM KLCI: 1,413.52 pts (+6.83pts, +0.49%)
⬆️ Resistance:  1450
⬇️ Support:  1380

HSI Index: 19,075.26 pts (+147.24pts, +0.78%)
⬆️ Resistance:  19800
⬇️ Support:  18400

Crude Palm Oil: RM4,035 (-RM11, -0.27%)
⬆️ Resistance:  4170
⬇️ Support:  3790

Brent Oil: $81.07 (+$1.43, +1.80%)
⬆️ Resistance:  82.90
⬇️ Support:  76.70

Gold: $1,961.94 (-$7.11, -0.36%)
⬆️ Resistance:  2030
⬇️ Support:  1910

M+ Online Technical Focus - 24 Jul 23
Chubb Ltd: Strengthening the Asia Market

Trading Catalyst
• Regarded as the world’s largest publicly traded property & casualty (P&C) insurance company and a leading commercial lines insurer in the US.
• Expanding into the Hong Kong markets after collaborating with Hang Seng Bank in a 15-year deal to provide coverage options for individuals and businesses in Hong Kong.
• Insurance industry may able to weather the challenging economic outlook, driven by rising wages as well as rising concerns about health and mortality risks, especially post Covid-19 pandemic.
• Technically, price has formed a breakout above USD195.04 and may target the next resistances at USD203.61-205.87 with long term target set at USD213.99.
 
Technical View

(i) CHUBB (S: USD186.61, R: USD203.61-205.87, LT TP: RM213.99, CL: RM185.00)

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

Economic Releases For The Week (24/7/2023-28/7/2023):

24/7/2023
MY - Malaysia's Inflation Rate, 12.00PM

26/7/2023
US - United States' New Home Sales, 10.00PM

27/7/2023
US - United States' Federal Reserve Interest Rate Decision, 2.00AM
MY - Malaysia's Producer Price Index, 12.00PM
EU - Eurozone's European Central Bank's Interest Rate Decision, 7.45PM
US - United States' 2Q23 GDP Growth Rate (Advance Reading), 8.30PM
US - United States' Pending Home Sales, 10.00PM

28/7/2023
JP - Japan's Bank of Japan's Interest Rate Decision, 11.00AM
EU - Eurozone's Business Confidence, 5.00PM
EU - Eurozone's Services Sentiment, 5.00PM
EU - Eurozone's Economic Sentiment, 5.00PM
EU - Eurozone's Industrial Sentiment, 5.00PM
EU - Eurozone's Consumer Inflation Expectations, 5.00PM
US - United States' Michigan Consumer Sentiment (Final), 10.00PM

Source: Bloomberg, M+ Online

Market update: Expectedly, the local bourse continues to make headway as bargain hunting activities are still prevalent among beaten down sector leaders of late. The near-term outlook remains firm and we see further upsides as the key index continues its recovery trend. The lower liners may capitalise onto the upward move, on the back of rotational play. Meanwhile, on Wall Street, the recent batch of corporate earnings releases have failed to spark the markets and that may see some near-term weakness, in our view. On the brighter note, markets are pricing in the final 25 basis points of interest rate hike this week and that the aggressive rate hiking campaign may likely to be at the tail-end. Commodities wise, the Brent crude oil (above USD80) was powered by signs of tightening supplies, while the CPO steadied above RM4,000.

Sector focus: The agreement by telecommunication players to take up equity stakes in state 5G agency Digital Nasional Berhad (DNB) may speed up the roll-out of 5G and will spur the telecommunication & media sector. The strong recovery in crude oil prices may present trading opportunities within the energy sector. On the downside, the technology sector may mirror the Nasdaq’s weakness last Friday.

Stocks to watch:
Energy: HENGYUAN, RL, WASCO, CARIMIN
Plantation: SIMEPLT, BPLANT, CEPAT
Telecommunication & Media: CDB, BINACOM, OPCOM
Consumer Products & Services: TEOSENG, OWG, LAYHONG
Others: SPTOTO, CAPITALA, MICROLN, NYLEX, SUNVIEW, GAMUDA

Source: M+ Online

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