M+ Online Morning Market Buzz - 14 Aug 23

Dow Jones: 35,281.40 pts (+105.25pts, +0.30%)
⬆️ Resistance:  36300
⬇️ Support:  34400

FBM KLCI: 1,457.16 pts (-1.77pts, -0.12%)
⬆️ Resistance:  1500
⬇️ Support:  1420

HSI Index: 19,075.19 pts (-173.07pts, -0.90%)
⬆️ Resistance:  20000
⬇️ Support:  18700

Crude Palm Oil: RM3,717 (-RM11, -0.30%)
⬆️ Resistance:  3970
⬇️ Support:  3590

Brent Oil: $86.81 (+$0.41, +0.47%)
⬆️ Resistance:  89.90
⬇️ Support:  81.70

Gold: $1,913.76 (+$1.28, +0.07%)
⬆️ Resistance:  1990
⬇️ Support:  1880

M+ Online Technical Focus - 14 Aug 23
Crowdstrike Holdings Inc: Rising demand for cybersecurity services

Trading Catalyst
• A global cybersecurity leader with an advanced cloud-native platform for protecting endpoints, cloud workloads, identities and data.
• Nearing a deal to acquire Bionic.AI for USD200.0-300.0m which provides security posture management platform for cloud services and boast notable clients include Chipotle, Freddie Mac and Transamerica.
• Demand for cybersecurity services may continue to rise following the increasingly interconnected and digitised world.
• Technically, traders may anticipate for a breakout above USD151.00 to target the next resistances at USD162.00-167.00 with long term target set at USD180.00. 

Technical View

(i) CRWD (S: USD142.0, R: USD162.00-167.00, LT TP: USD180.00, CL: USD139.00)

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

Economic Releases For The Week (14/8/2023-18/8/2023):

15/8/2023
JP - Japan's 2Q23 GDP Growth Rate (Preliminary), 7.50AM
CN - China's Retail Sales, 10.00AM
CN - China's Industrial Production, 10.00AM
CN - China's Unemployment Rate, 10.00AM
JP - Japan's Industrial Production, 12.30PM
UK - United Kingdom's Unemployment Rate, 2.00PM
EU - Eurozone's ZEW Economic Sentiment, 5.00PM
US - United States' Retail Sales, 8.30PM

16/8/2023
UK - United Kingdom's Inflation Rate, 2.00PM
EU - Eurozone's 2Q23 GDP Growth Rate (2nd Est), 5.00PM
EU - Eurozone's Industrial Production, 5.00PM
US - United States' Industrial Production, 9.15PM
US - United States' Manufacturing Production, 9.15PM

17/8/2023
US - United States' FOMC Minutes, 2.00AM
JP - Japan's Machinery Orders, 7.50AM

18/8/2023
JP - Japan's Inflation Rate, 7.30AM
MY - Malaysia's 2Q23 GDP Growth Rate, 12.00PM
UK - United Kingdom's Retail Sales, 2.00PM
EU - Eurozone's Inflation Rate, 5.00PM

Source: Bloomberg, M+ Online

Market update: The FBM KLCI was left marginally in red as investors took a cautious stance ahead of the weekend state elections. However, with the state election concluded with a “3-3” status quo outcome, we reckon that the FBM KLCI may stage a relief rebound. The outcome is deemed positive to demonstrate the stability of Pakatan Harapan (PH)-Barisan Nasional (BN) pact government. We expect the lower liners to see improved trading sentiment with investors to re-position ahead of the barrage of corporate earnings releases. Still, gains are expected to remain choppy from the uncertainty surrounding the release of the US FOMC minutes meeting in mid-week. Commodities wise, the Brent crude oil stabled above USD86/bbl, while the CPO prices defended the RM3,700/MT.

Sector focus: The stability in crude oil prices following the optimistic revision forecast by the International Energy Agency (IEA) may continue to give strength to the energy sector. Meanwhile, the RM5.20bn worth of investment commitments secured in the digital economy sector from China and Singapore may boost the technology sector.

Stocks to watch:
Energy: DAYANG, WASCO, UZMA, PETRONM
Technology: UNISEM, SFPTECH, INFOM 
Property: IOIPG, ECOWLD, OSK
Construction: AME, EKOVEST, WCT
Others: HUMEIND, SPTOTO, DRBHCOM, EG, KUB, SAMAIDEN

Source: M+ Online

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