M+ Online Morning Market Buzz - 16 Mar 22

Dow Jones: 33,544.34 pts (+599.10pts, +1.82%)
⬆ Resistance:  34300
⬇ Support:  32200

FBM KLCI: 1,557.41 pts (-10.03pts, -0.64%)
⬆ Resistance:  1620
⬇ Support:  1520

HSI Index: 18,415.08 pts (-1116.58pts, -5.72%)
⬆ Resistance:  21600
⬇ Support:  17900

Crude Palm Oil: RM5,805 (+RM119, +2.05%)
⬆ Resistance:  7420
⬇ Support:  5880

Brent Oil: $99.91 (-$6.99, -6.54%)
⬆ Resistance:  134.30
⬇ Support:  95.50

Gold: $1,917.94 (-$32.94, -1.69%)
⬆ Resistance:  2110
⬇ Support:  1870

M+ Online Technical Focus - 16 Mar 22
CIMB Group Holdings Bhd: Banking on anticipated higher interest rate environment

Trading Catalyst
• Ranked as the 5th largest banking group by assets in ASEAN supported by 33,000 staffs and has over 18.0m customers as at end-December 2021.
• Bank Negara Malaysia (BNM) may mirror the US Federal Reserve to raise the benchmark interest rate in 2H22 in bid to contain the inflationary pressure.
• Trading below its net book value of RM5.76, suggesting that valuations could be attractive at current juncture and prospective dividend yields at 4.8% and 5.9% for FY22f and FY23f respectively are also fairly decent.
• Technically, traders may anticipate for a potential rebound above RM5.10 to target the next resistances at RM5.30-5.50 with long term target at RM5.75.

Technical View

(i) CIMB (S: RM4.92, R: RM5.30-5.50, LT TP: RM5.75, CL: RM4.91)

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

Source: Bloomberg, M+ Online

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