M+ Online Morning Market Buzz - 16 Aug 23

Dow Jones: 34,946.39 pts (-361.24pts, -1.02%)
⬆️ Resistance:  36300
⬇️ Support:  34300

FBM KLCI: 1,460.28 pts (+3.28pts, +0.23%)
⬆️ Resistance:  1500
⬇️ Support:  1420

HSI Index: 18,581.11 pts (-192.44pts, -1.03%)
⬆️ Resistance:  19800
⬇️ Support:  18200

Crude Palm Oil: RM3,826 (+RM21, +0.55%)
⬆️ Resistance:  3920
⬇️ Support:  3590

Brent Oil: $84.89 (-$1.32, -1.53%)
⬆️ Resistance:  89.90
⬇️ Support:  82.70

Gold: $1,902.00 (-$5.10, -0.27%)
⬆️ Resistance:  1980
⬇️ Support:  1860

M+ Online Technical Focus - 16 Aug 23
Malayan Cement Bhd: Brighter demand prospects ahead

Trading Catalyst
• Incorporated since 1950 and is now positioned as one of the leading cement players in Malaysia.
• Malaysia’s cement production may see further improvement on the back of the acceleration of construction activities post Malaysia state elections.
• To leverage onto the upcoming Budget 2024, which we deem to be expansionary in bid to support the Malaysia economic growth.
• Technically, traders may anticipate for a potential breakout above RM3.37 to target the next resistances at RM3.50-3.60 with long term target set at RM3.80.
 
Technical View

(i) MCEMENT (S: RM3.10, R: RM3.50-3.60, LT TP: RM3.80, CL: RM3.09)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI took another stride forward as sentiment turned more favourable yesterday. We reckon that the key index may build onto its previous session gains, driven by the (i) stable political environment, (ii) uninterrupted foreign funds inflow over the past 7 consecutive trading sessions and (iii) active EPF members hitting all-time high of 8.5m signals robust employment market. The lower liners are also in a sweet spot with the quarterly reporting season shifted into higher gear. Moving forward, investors will be keeping a close tab on the US FOMC minutes releases that may provide additional clues over the interest rate direction in the world largest economy. Commodities wise, the Brent crude oil slipped towards USD85/bbl, while the CPO prices stabilised above RM3,800/MT.

Sector focus: The rebound in crude palm oil prices after China unexpectedly cut key policy rates to spur economic growth is deemed positive for the plantation sector. On the other hand, the weaker crude oil prices may lead to a potential pullback in the energy sector, while profit taking activities may emerge within the technology sector following the softer performance on Nasdaq overnight.

Stocks to watch:
Plantation: TAANN, JTIASA, BPLANT, TSH
Property: TENAGA, YTLPOWR, RANHILL
Utilities: EWEIN, MATRIX, OSK
Construction: TEOSENG, MSM, MYNEWS
Others: SAM, MBMR, MCEMENT, HUMEIND

Source: M+ Online

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.