M+ Online Morning Market Buzz - 1 Apr 22

Dow Jones: 34,678.35 pts (-550.46pts, -1.56%)
⬆ Resistance:  36100
⬇ Support:  33900

FBM KLCI: 1,587.36 pts (+4.14pts, +0.26%)
⬆ Resistance:  1640
⬇ Support:  1550

HSI Index: 21,996.85 pts (-235.18pts, -1.06%)
⬆ Resistance:  22900
⬇ Support:  20800

Crude Palm Oil: RM5,705 (+RM81, +1.42%)
⬆ Resistance:  6220
⬇ Support:  5590

Brent Oil: $113.45 (-$6.73, -4.88%)
⬆ Resistance:  123.40
⬇ Support:  102.80

Gold: $1,937.44 (+$4.57, +0.24%)
⬆ Resistance:  2010
⬇ Support:  1860

M+ Online Technical Trading Stocks - 1 Apr 22

Stock Name: SPSETIA (8664)
Entry: Buy above RM1.25
Target: RM1.33 (6.4%), RM1.37 (9.6%)
Stop: RM1.20 (-4.0%)
Shariah: Yes
Technical: Consolidation breakout

Stock Name: TASCO (5140)
Entry: Buy above RM1.13
Target: RM1.21 (7.1%), RM1.24 (9.7%)
Stop: RM1.08 (-4.4%)
Shariah: Yes
Technical: Monitor for breakout

Market update: The FBM KLCI outperformed the regional peers on the back of improving sentiment prior to the reopening of travel borders and the positive sentiment should remain at least for today. However, uncertainties remained on the global front as Russia threatened to halt gas contracts supply and the tension between Ukraine and Russia still persisted. On the commodity markets, crude oil prices retraced after US President Biden decided to carry out oil release from the nation’s petroleum reserve, while the CPO price trended lower, hovering around RM5,700. 

Sector focus: Selected O&G stock may see a pullback following the US decision to release its oil reserve. The technology sector may take cue from the negative performance in Nasdaq overnight. Meanwhile, we reckon the airport, aviation, tourism, consumer and banking stocks could remain upbeat as border reopen bodes well for economic recovery.

Stocks to watch: 

Finance: ABMB, BURSA, RCECAP, TAKAFUL, TUNEPRO
Construction: IJM, JAKS, WCT
Technology: DSONIC, GTRONIC, HTPADU, MYEG, SALUTE, VIS, VITROX, VS
Furniture: HEVEA, WOODLAN
Telco & Media: MEDIA, OCK
Property: LBS, TELADAN
Healthcare: KOSSAN, SCOMNET
Others: BJFOOD, LCTITAN, PANTECH, SKBSHUT, YBS

2Q22 Market Chat: Seizing opportunities during crisis period

• Malaysia will be transitioning into the endemic phase and reopening the borders should boost the economic activities going forward. 
• Global themes include (i) tension between Ukraine-Russia, (ii) inflationary pressure, (iii) Fed’s monetary policies, and (iv) recession fears, while domestic catalysts include (i) GE15, (ii) 5G rollout, and (iii) commodity supercycle.
• Under this environment, we like recovery-themed stocks and GE15 catalysts may boost trading interest within the construction sector. Besides, we opine the commodity-linked sector will remain strong in 2Q22.
 
2Q22 Stock picks:-
1)  AIRPORT (S: RM6.32, R: RM7.47-7.97, CL: RM5.90)
2)  ECONBHD (S: RM0.235, R: RM9.35-0.435, CL: RM0.19)
3)  OCK (S: RM0.405, R: RM0.46-0.505, CL: RM0.375)
4)  JAKS (S: RM0.31, R: RM0.375-0.43, CL: RM0.275)
5)  KGB (S: RM1.29, R: RM1.60-1.78, CL: RM1.15)
6)  ELKDESA (S: RM1.27, R: RM1.45-1.51, CL: RM1.23)
7)  HARTA (S: RM4.53, R: RM5.53-6.22, CL: RM4.15)
8)  BPPLAS (S: RM1.35, R: RM1.64-1.76, CL: RM1.22)
9)  KMLOONG (S: RM1.85, R: RM2.05-2.21, CL: RM1.74)
10)  PANTECH (S: RM0.66, R: RM0.75-0.80, CL: RM0.62)
 
S: Support, R: Resistance, CL: Cut loss

Source: Bloomberg, M+ Online

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