M+ Online Morning Market Buzz - 7 Aug 23

Dow Jones: 35,065.62 pts (-150.27pts, -0.43%)
⬆️ Resistance:  36400
⬇️ Support:  34400

FBM KLCI: 1,445.21 pts (+3.36pts, +0.23%)
⬆️ Resistance:  1500
⬇️ Support:  1410

HSI Index: 19,539.46 pts (+118.59pts, +0.61%)
⬆️ Resistance:  20800
⬇️ Support:  19000

Crude Palm Oil: RM3,859 (+RM35, +0.92%)
⬆️ Resistance:  4040
⬇️ Support:  3740

Brent Oil: $86.24 (+$1.10, +1.29%)
⬆️ Resistance:  88.40
⬇️ Support:  80.80

Gold: $1,942.91 (+$8.85, +0.46%)
⬆️ Resistance:  2020
⬇️ Support:  1890

M+ Online Technical Focus - 7 Aug 23
Shenzhou International Group Holdings Ltd: Anticipating for recovery in 2H23

Trading Catalyst
• Regarded as the largest vertically integrated knitwear manufacturer in China and the country's largest exporter of knitwear.
• 2H23 expects to be more optimistic following the near completion of destocking of inventories from major customers.
• Over the past 3 years, online channels such as live broadcasts and social media platforms have transformed the textile industry to reach a wider customer base, attracting startup buyers.
• Technically, traders may anticipate for a potential breakout above HKD82.40 to target the next resistances at HKD88.60-95.40 with long term target set at HKD108.30.
 
Technical View

(i) SHENZHOU (S: HKD74.70, R: HKD88.60-95.40, LT TP: HKD108.30, CL: HKD74.10)

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

M+ Online Technical Focus - 7 Aug 23
Shenzhou International Group Holdings Ltd: Anticipating for recovery in 2H23

Trading Catalyst
• Regarded as the largest vertically integrated knitwear manufacturer in China and the country's largest exporter of knitwear.
• 2H23 expects to be more optimistic following the near completion of destocking of inventories from major customers.
• Over the past 3 years, online channels such as live broadcasts and social media platforms have transformed the textile industry to reach a wider customer base, attracting startup buyers.
• Technically, traders may anticipate for a potential breakout above HKD82.40 to target the next resistances at HKD88.60-95.40 with long term target set at HKD108.30.
 
Technical View

(i) SHENZHOU (S: HKD74.70, R: HKD88.60-95.40, LT TP: HKD108.30, CL: HKD74.10)

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

Economic Releases For The Week (7/8/2023-11/8/2023):

8/8/2023
MY - Malaysia's Industrial Production, 12.00PM

9/8/2023
CN - China's Inflation Rate, 9.30AM
CN - China's Producer Price Index, 9.30AM
MY - Malaysia's Retail Sales, 12.00PM

10/8/2023
JP - Japan's Producer Price Index, 7.50AM
MY - Malaysia's Unemployment Rate, 12.00PM
US - United States' Inflation Rate, 8.30PM

11/8/2023
UK - United Kingdom's 2Q23 GDP Growth Rate (Preliminary), 2.00PM
UK - United Kingdom's Industrial Production, 2.00PM
UK - United Kingdom's Manufacturing Production, 2.00PM
US - United States' Producer Price Index, 8.30PM
US - United States' Michigan Consumer Sentiment (Preliminary), 8.30PM

Source: Bloomberg, M+ Online

Market update: Bargain hunting activities alongside the return of foreign funds drove the key index higher as the positive performance was also in line with the mostly higher regional markets. We reckon that the key index may attempt to build onto last Friday’s gains, given that sentiment across regional markets has shown signs of improvement. The lower liners may remain in the consolidation phase with investors prepped for a barrage of quarterly corporate earnings releases, whilst trading activities dwindled. For now, investors should trade in a cautious undertone ahead of the Malaysia states election till the end of the week. Commodities wise, the Brent crude oil advanced above USD86/bbl, while the CPO hovered above RM3,800/MT.

Sector focus: We continue to favour the energy sector that rides onto the higher crude oil prices. The plantation sector may be bolstered by the signing of a memorandum of understanding (MOU) between Malaysian Palm Oil Board (MPOB) and Indian Vegetable Oil Producers' Association (IVPA) to promote the exchange of vegetable oil. With the weaker guidance from Apple, we expect some profit taking to emerge within the technology sector.

Stocks to watch:
Energy: CARIMIN, UZMA, PANTECH, T7GLOBAL
Plantation: TSH, HSPLANT, BPLANT
Utilities: MFCB, YTLPOWR, TENAGA
Consumer Products & Services: FFB, CAMRES, PTRB
Others: SUNWAY, YTLREIT, SLVEST, SCOMNET, DSONIC

Source: M+ Online

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