M+ Online Morning Market Buzz - 13 Jul 22

Dow Jones: 30,981.33 pts (-192.51pts, -0.62%)
⬆️ Resistance:  32200
⬇️ Support:  30200

FBM KLCI: 1,426.08 pts (+0.29pts, +0.02%)
⬆️ Resistance:  1480
⬇️ Support:  1400

HSI Index: 20,844.74 pts (-279.46pts, -1.32%)
⬆️ Resistance:  22500
⬇️ Support:  20400

Crude Palm Oil: RM4,000 (-RM116, -2.82%)
⬆️ Resistance:  4410
⬇️ Support:  3670

Brent Oil: $99.49 (-$7.61, -7.11%)
⬆️ Resistance:  109.90
⬇️ Support:  96.60

Gold: $1,726.00 (-$7.96, -0.46%)
⬆️ Resistance:  1810
⬇️ Support:  1690

Pantech Group Holdings Bhd: Tapping onto elevated crude oil prices 

Trading Catalyst
• One-stop centre for manufacturing and distribution of pipes, fittings, flanges, valves, and other related components that serves more than 500 customers worldwide.
• In prime position to leverage onto the recovery in oil & gas activities following the rising crude oil prices.
• Adoption of sustainable energy source by installing solar photovoltaic system of around 1,469kWp that is expected to be completed in FY23.
• Technically, traders may anticipate for a potential rebound with confirmation to come in above RM0.60 to target the next resistances at RM0.645-0.70 with long term target at RM0.765.

Technical View

(i) PANTECH (S: RM0.565, R: RM0.645-0.70, LT TP: RM0.765, CL: RM0.56)

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

Market update: The FBM KLCI closed marginally higher as final-hour buying interest lifted the key index. Nevertheless, we believe sentiment could remain tepid amid downtrend move on Wall Street and regional markets. Meanwhile, concerns over recession persisted against the backdrop of rising global interest rate setting. Commodities wise, crude oil price sank below USD100 per barrel amid concern over weaker demand following China’s stringent move to curb the Covid-19 spread. The CPO was traded towards RM4,000 amid declined palm oil export and rising CPO inventories in June 2022.

Sector focus: We believe the technology sector may continue to underperform, mirroring the weakness on Nasdaq overnight, while the energy sector may also take cue from the sharp decline on crude oil prices. On a brighter note, the banking sector may benefit from expected interest rate hikes in near future.

Stocks to watch:

Finance: ABMB RHBBANK
Consumer: ECOMATE LAYHONG
Construction & Building materials: CHINWEL GAMUDA MYCRON
Telco & Technology: DSONIC MAXIS TM
Chemicals: HEXIND
Power-related: GASMSIA JSB
Others: BSTEAD KLCC, AHEALTH

Source: M+ Online

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