M+ Online Morning Market Buzz - 31 Jul 23

Dow Jones: 35,459.29 pts (+176.57pts, +0.50%)
⬆️ Resistance:  36400
⬇️ Support:  34600

FBM KLCI: 1,450.35 pts (-0.92pts, -0.06%)
⬆️ Resistance:  1490
⬇️ Support:  1390

HSI Index: 19,916.56 pts (+277.45pts, +1.41%)
⬆️ Resistance:  20400
⬇️ Support:  18200

Crude Palm Oil: RM4,006 (-RM20, -0.50%)
⬆️ Resistance:  4300
⬇️ Support:  3870

Brent Oil: $84.99 (+$0.75, +0.89%)
⬆️ Resistance:  86.80
⬇️ Support:  78.90

Gold: $1,959.49 (+$13.49, +0.69%)
⬆️ Resistance:  2030
⬇️ Support:  1910

M+ Online Technical Focus - 31 Jul 23
CNOOC Ltd: Expansion in Exploration and Production

Trading Catalyst
• Regarded as the largest producer of offshore crude oil and natural gas in China and one of the largest independent oil and gas exploration and production companies in the world.
• To explore oil and gas offshore in Tanzania and discovery of potentially large volumes of light oil in the southern Bohai Sea may boost production capacity.
• Prospects of tighter supplies due to product cut from OPEC+ members and escalating tension between Russia and Ukraine may keep crude oil prices elevated.
• Technically, traders may anticipate for a potential breakout above HKD12.55 to target the next resistances at HKD13.05-13.36 with long term target set at HKD14.00.

Technical View

(i) CNOOC (S: HKD11.82, R: HKD13.06-13.36, LT TP: HKD14.00, CL: HKD11.00)

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

Economic Releases For The Week (31/7/2023-4/8/2023):

31/7/2023
JP - Japan's Retail Sales, 7.50AM
CN - China's NBS Manufacturing PMI, 9.30AM
CN - China's NBS Non Manufacturing PMI, 9.30AM
JP - Japan's Consumer Confidence, 1.00PM
EU - Eurozone's 2Q23 GDP Growth Rate (Flash), 5.00PM
US - United States' Chicago PMI, 9.45PM

1/8/2023
JP - Japan's Unemployment Rate, 7.30AM
JP - Japan's Jibun Bank Manufacturing PMI, 7.30AM
MY - Malaysia's S&P Global Manufacturing PMI, 8.30AM
CN - China's Caixin Manufacturing PMI, 9.45AM
EU - Eurozone's HCOB Manufacturing PMI, 4.00PM
UK - United Kingdom's S&P Global/CIPS Manufacturing PMI, 4.30PM
EU - Eurozone's Unemployment Rate, 5.00PM
US - United States' S&P Global Manufacturing PMI, 9.45PM
US - United States' ISM Manufacturing PMI, 10.00PM

3/8/2023
JP - Japan's Jibun Bank Services PMI, 8.30AM
JP - Japan's Jibun Bank Composite PMI, 8.30AM
CN - China's Caixin Services PMI, 9.45AM
CN - China's Caixin Composite PMI, 9.45AM
EU - Eurozone's HCOB Global Services PMI, 4.00PM
EU - Eurozone's HCOB Global Composite PMI, 4.00PM
UK - United Kingdom's S&P Global Services PMI, 4.30PM
UK - United Kingdom's S&P Global Composite PMI, 4.30PM
EU - Eurozone's Producer Price Index, 5.00PM
UK - United Kingdom's Bank of England's Interest Rate Decision, 7.00PM
US - United States' S&P Global Services PMI, 9.45PM
US - United States' S&P Global Composite PMI, 9.45PM
US - United States' ISM Non-Manufacturing PMI, 10.00PM
US - United States' Factory Orders, 10.00PM

4/8/2023
EU - Eurozone's Retail Sales, 5.00PM
US - United States' Unemployment Rate, 8.30PM

Market update: The FBM KLCI took a step back following a string of positive performance as of late. We reckon that the profit taking activities would be healthy for recent gains to be digested, whilst allowing the key index to come off from the overbought territory. Still, we reckon that any potential downside will be well cushioned by the improved market sentiment. The lower liners are already undergoing a consolidation spell ahead of the quarterly reporting month. Looking ahead, investors will be keeping a close watch on China’s manufacturing data as well as initial estimates of Eurozone’s 2Q23 GDP data. Commodities wise, the Brent crude oil is approaching USD85/bbl, while the CPO hovered above RM4,000/MT.

Sector focus: We expect the energy sector to remain buoyant on the back of the higher crude oil prices amid the prospects of tightening supplies. The technology sector may mirror the strong performance on Nasdaq last Friday. We also see the return of foreign funds may continue to lend support to banking heavyweights.

Stocks to watch:
Construction: PETRONM, MHB, WASCO, HENGYUAN
Property: GREATEC, TTVHB, THETA
Solar-related: BURSA, ALLIANZ, ABMB
Consumer Products & Services: KOSSAN, TOPGLOV, TMCLIFE
Others: SUNWAY, EKOVEST, OSK, BPLANT, SAMAIDEN

Source: M+ Online

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