M+ Online Morning Market Buzz - 6 Jul 22

Dow Jones: 30,967.82 pts (-129.44pts, -0.42%)
⬆️ Resistance:  31800
⬇️ Support:  29800

FBM KLCI: 1,440.81 pts (+3.29pts, +0.23%)
⬆️ Resistance:  1490
⬇️ Support:  1410

HSI Index: 21,853.07 pts (+22.72pts, +0.10%)
⬆️ Resistance:  22800
⬇️ Support:  21100

Crude Palm Oil: RM4,062 (-RM112, -2.68%)
⬆️ Resistance:  5100
⬇️ Support:  4070

Brent Oil: $102.77 (-$10.73, -9.45%)
⬆️ Resistance:  122.90
⬇️ Support:  99.10

Gold: $1,764.76 (-$43.39, -2.41%)
⬆️ Resistance:  1870
⬇️ Support:  1730

M+ Online Technical Focus - 6 Jul 22
Duopharma Biotech Bhd: Expansion within ASEAN market

Trading Catalyst
• Owns and operates 3 manufacturing plants in Klang, Bangi and Glenmarie, Selangor with a portfolio of more than 300 generic drugs.
• Aims to strengthen their presence in the overseas market, through potential merger & acquisition activities within the ASEAN market.
• Working towards the extension of approved product purchase list (APPL) contract for the next 12 months, upon expiry at end-2022.
• Technically, traders may anticipate for a potential flag-formation breakout above RM1.20, targeting the next resistances at RM1.28-1.35 with long term target at RM1.48.

Technical View

(i) DPHARMA (S: RM1.12, R: RM1.28-1.35, LT TP: RM1.48, CL: RM1.11)

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

Market update: The FBM KLCI staged a late-day rebound on the back of mild bargain hunting activities. Nevertheless, we expect investors to stay sidelines amid the heightened inflationary pressure and lack of fresh catalysts environment. Meanwhile, all eyes will be on the monetary policy meeting and BNM’s interest rate decision today. Brent crude oil plummeted to trade near USD100-105 a barrel as concerns over recession weighed on price. The CPO price tumbled below RM4,100 as Indonesian supplies are set to flood the market amid rising export permits. 

Sector focus: With the Nasdaq rebounded the strongest overnight, we believe buying support to spillover to the tech sector on our local front. Also, traders may favour the banking stocks ahead of the MPC meeting. Besides, we reckon traders are likely to avoid the energy and plantation sectors amid the declining commodity prices. Nevertheless, construction related stocks might trade positively on the back of the news on EKOVEST taking over EPC job in RTS Link project.

Stocks to watch: 

Banking: ABMB, AFFIN, CIMB 
Consumer & Furniture: LAYHONG, SDS, UCHITEC
Construction & Building materials: CHINWEL, GAMUDA, IJM
Energy & Utilities: DAYANG, MALAKOF, YTLPOWR
Technology & Telco: MYEG, TIMECOM, TM, UWC
Chemicals: HEXIND, HEXTAR
Transportation and Logistics: CAPITALA, SYSCORP
Others: EPMB, GOB, MGRC, SUNREIT 

Source: M+ Online

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