M+ Online Morning Market Buzz - 26 Jul 23

Dow Jones: 35,438.07 pts (+26.83pts, +0.08%)
⬆️ Resistance:  36300
⬇️ Support:  34300

FBM KLCI: 1,436.79 pts (+12.10pts, +0.85%)
⬆️ Resistance:  1470
⬇️ Support:  1380

HSI Index: 19,434.40 pts (+766.25pts, +4.10%)
⬆️ Resistance:  19900
⬇️ Support:  18200

Crude Palm Oil: RM4,088 (+RM22, +0.54%)
⬆️ Resistance:  4300
⬇️ Support:  3880

Brent Oil: $83.64 (+$0.90, +1.09%)
⬆️ Resistance:  85.60
⬇️ Support:  77.10

Gold: $1,964.96 (+$10.23, +0.52%)
⬆️ Resistance:  2030
⬇️ Support:  1920

M+ Online Technical Focus - 26 Jul 23
SDS Group Bhd: Expansions are well on track

Trading Catalyst
• Engages in production and distribution of bakery products that are marketed under the trademarked brands of “Top Baker” and “Daily’s”.
• Plans to introduce more stock-keeping units, adding 3-5 retail cafe and bakeries and additions of 25 trucks to its existing fleet of 281.
• Completion of transfer of listing status into the main market of Bursa Malaysia will enhance the reputation as well as enabling it to achieve greater recognition and acceptance from institutional investors.
• Technically, traders may anticipate for a potential short-term consolidation breakout above RM0.665 to target the next resistances at RM0.705-0.735 with long term target set at RM0.795.
 
Technical View

(i) SDS (S: RM0.62, R: RM0.705-0.735, LT TP: RM0.795, CL: RM0.615)

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

Source: Bloomberg, M+ Online

Market update: The recovery trend on the local bourse remained un-interrupted for the fourth straight session after China pledged to step up policy support for the economy following a series of disappointing economic data as of late. The lower liners also advanced as traders continued to capitalise onto the positive market sentiment. Going forward, we expect rotational play to buoy the extended upward momentum, while keeping a close tab onto the upcoming US Federal Reserve Interest Rate decision. Overall, the market participants are pricing in another 25 basis points of rate hike, and the consensus is pointing towards a potential pause in the subsequent meetings ahead. Commodities wise, the Brent crude oil advanced rallied above USD83/bbl, while the CPO steadied above RM4,000/MT.

Sector focus: The technology sector may build onto the previous session rebound move, taking cue from the positive developments on Nasdaq overnight. Meanwhile, we reckon that trading activities may remain buoyant on the plantation and energy sector, owing to the improved commodities prices.

Stocks to watch:
Technology: PENTA, MI, SFPTECH, VSTECS
Property: ECOWLD, IOIPG, OSK
Energy: DELEUM, PETRONM, WASCO
Financial Services: CIMB, ABMB, BURSA
Others: DRBHCOM, AAX, CAMRES, SAM, MASTER, SDS

Source: M+ Online

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