M+ Online Morning Market Buzz - 21 Aug 23

Dow Jones: 34,500.66 pts (+25.83pts, +0.07%)
⬆️ Resistance: 36100
⬇️ Support: 33600

FBM KLCI: 1,446.09 pts (-1.89pts, -0.13%)
⬆️ Resistance: 1500
⬇️ Support: 1420

HSI Index: 17,950.85 pts (-375.78pts, -2.05%)
⬆️ Resistance: 19200
⬇️ Support: 17600

Crude Palm Oil: RM3,871 (-RM52, -1.33%)
⬆️ Resistance: 4050
⬇️ Support: 3610

Brent Oil: $84.80 (+$0.68, +0.81%)
⬆️ Resistance: 88.50
⬇️ Support: 81.40

Gold: $1,889.31 (-$0.12, -0.01%)
⬆️ Resistance: 1960
⬇️ Support: 1850

M+ Online Technical Focus - 21 Aug 23
BYD Electronic International Co Ltd: Riding onto surging EV sales and intelligent products

Trading Catalyst
• Regarded as one of the world's leading providers of intelligent product solutions involving in 4 major products; (i) Smart Phone & NB Notebook PC, (ii) New Intelligent Product, (iii) Auto Intelligent System and (iv) Medical Devices.
• Expansion of scope of works in partnership with US chip giant Nvidia is expected to boost topline growth.
• Leveraging onto the rising demand in electric vehicles and intelligent products.
• Technically, price is establishing the breakout-pullback-continuation pattern and may target the next resistances at HKD31.00-34.00 with long term target set at HKD36.00.

Technical View

(i) BYD (S: HKD27.20, R: HKD31.00-34.00, LT TP: HKD36.00, CL: HKD26.00)

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

Economic Releases For The Week (21/8/2023-25/8/2023):

22/8/2023
US - United States' Existing Home Sales, 10.00PM

23/8/2023
US - United States' New Home Sales, 10.00PM

25/8/2023
MY - Malaysia's Inflation Rate, 12.00PM
US - United States' Michigan Consumer Sentiment, 10.00PM

Source: Bloomberg, M+ Online

Market update: The local bourse was not spared by the sell down in regional markets as volatility remained unabated. The selling pressure was also compounded with the weaker-than-expected 2Q23 GDP growth at 2.9% YoY vs. Bloomberg consensus expectations of 3.6% YoY expansion. Looking ahead, we expect the weakness of external demand (slowing exports) may continue to weigh on the growth. Meanwhile, the lower liners may undergo a consolidation spell with key focus shifting towards a barrage of corporate earnings releases. Still, any further pullback may also attract quick bargain hunting, in our view. Commodities wise, the Brent crude oil steadied above USD84/bbl, while the CPO prices hovered above RM3,800/MT.

Sector focus: Following the stability in crude oil and crude palm oil prices, we reckon that the energy and plantation sector may turn upbeat. The strong private spending amid the improved labour market condition may lend support to the consumer products & services sector.

Stocks to watch:
Plantation: TAANN, BPLANT, TSH, SOP
Energy: HIBISCS, WASCO, DAYANG
Automotive-related: UMW, DRBHCOM, APM
Consumer Products & Services: MSM, LHI, FFB
Others: HUMEIND, MENANG, MKH, SCOMNET, CLOUDPT

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.