M+ Online Morning Market Buzz - 2 Aug 23 
 
Dow Jones: 35,630.68 pts (+71.15pts, +0.20%) 
⬆️ Resistance:  36400 
⬇️ Support:  34600 
 
FBM KLCI: 1,451.24 pts (-8.19pts, -0.56%) 
⬆️ Resistance:  1500 
⬇️ Support:  1410 
 
HSI Index: 20,011.12 pts (-67.82pts, -0.34%) 
⬆️ Resistance:  20800 
⬇️ Support:  18900 
 
Crude Palm Oil: RM3,887 (+RM15, +0.39%) 
⬆️ Resistance:  4240 
⬇️ Support:  3760 
 
Brent Oil: $84.91 (-$0.52, -0.61%) 
⬆️ Resistance:  87.70 
⬇️ Support:  81.00 
 
Gold: $1,944.29 (-$20.80, -1.06%) 
⬆️ Resistance:  2030 
⬇️ Support:  1910 
 
M+ Online Technical Focus - 2 Aug 23 
Supercomnet Technologies Bhd: New products rollout to drive revenue growth 
 
Trading Catalyst 
• Established track record, backed by long-term clientele such as New York Stock Exchange-listed Edwards Lifesciences Corp and Denmark-based Ambu whom have business dealings for more than 10 years on average. 
• To rollout new products such as the mass production of nano-medicine therapy device sometime towards end-2023/early-2024. 
• Securities Commission has given the greenlight for SCOMNET to transfer its shares and warrants from the ACE Market of Bursa Malaysia to the Main Market. 
• Technically, traders may anticipate for a potential short-term resistance breakout above RM1.39 to target the next resistances at RM1.48-1.55 with long term target set at RM1.65. 
  
Technical View 
 
(i) SCOMNET (S: RM1.29, R: RM1.48-1.55, LT TP: RM1.65, CL: RM1.28) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 
Source: Bloomberg, M+ Online

Market update: The FBM KLCI took a breather as selling pressure emerged in selected index heavyweights with foreign fund turned net selling for the first time in 6 trading days. Meanwhile, the S&P Global Manufacturing PMI stood at 47.8 in July 2023; suggesting that sustained slowdown in business conditions has some way to go before demand recovers. Nevertheless, we opined that the pullback is healthy to allow recent gains to be digested. The lower liners are also experiencing a consolidation with traders opting for the wait-and-see approach ahead of the Malaysia state election. Commodities wise, the Brent crude oil slipped below USD85/bbl, while the CPO hovered slightly below RM3,900/MT.

Sector focus: With signs of volatility emerging, we reckon that sectors that are defensive in nature such as healthcare, utilities and REIT may be in the spotlight. Following the pullback on Nasdaq overnight, the technology sector may mirror the weakness.

Stocks to watch:
Healthcare: HARTA, SCOMNET, TOPGLOV, SUPERMX
REIT: PAVREIT, YTLREIT, CLMT
Consumer Products & Services: TEOSENG, CCK, PTRB
Utilities: YTLPOWR, TALIWRK, GASMSIA
Others: PERTAMA, KPPROP, D&O, BPPLANT, PLS, MTAG

Source: M+ Online

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