M+ Online Morning Market Buzz - 18 Jul 22
Dow Jones: 31,288.26 pts (+658.09pts, +2.15%)
⬆️ Resistance: 32000
⬇️ Support: 29600
FBM KLCI: 1,418.44 pts (-1.62pts, -0.11%)
⬆️ Resistance: 1460
⬇️ Support: 1390
HSI Index: 20,297.72 pts (-453.49pts, -2.19%)
⬆️ Resistance: 22000
⬇️ Support: 19900
Crude Palm Oil: RM3,629 (+RM9, +0.25%)
⬆️ Resistance: 4370
⬇️ Support: 3420
Brent Oil: $101.16 (+$2.06, +2.08%)
⬆️ Resistance: 109.90
⬇️ Support: 92.70
Gold: $1,708.17 (-$1.77, -0.10%)
⬆️ Resistance: 1790
⬇️ Support: 1670
M+ Online Technical Focus - 18 Jul 22
Inari Amertron Bhd: Riding onto resilient semiconductor chip demand
Trading Catalyst
• One of the leading outsourced semiconductor assembly and test (OSAT) & electronics manufacturing services (EMS) providers in Malaysia.
• Expanding presence in China through a joint venture (JV) with China Fortune-Tech Capital Co Ltd (CFTC).
• Ramping up its radio frequency (RF) business for a smartphone launch in the US in September 2022.
• Technically, price is forming a bottoming out formation with potential further recovery to take place, targeting the next resistances at RM2.67-2.87 with long term target at RM3.23.
Technical View
(i) INARI (S: RM2.36, R: RM2.67-2.87, LT TP: RM3.23, CL: RM2.35)
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss
Economic Releases For The Week (18/7/2022-22/7/2022):
19/7/2022
UK - United Kingdom's Unemployment Rate, 2.00PM
EU - Eurozone's Inflation Rate, 5.00PM
20/7/2022
UK - United Kingdom's Inflation Rate, 2.00PM
US - United States' Existing Home Sales, 10.00PM
21/7/2022
JP - Japan's Bank of Japan's Interest Rate Decision, 11.00AM
EU - Eurozone's European Central Bank's Interest Rate Decision, 7.45PM
22/7/2022
JP - Japan's Inflation Rate, 7.30AM
MY - Malaysia's Inflation Rate, 12.00PM
UK - United Kingdom's Retail Sales, 2.00PM
Market update: The FBM KLCI ended the week with marginal losses as quick profit taking activities emerged on selected heavyweights. While the local bourse may be poised for a rebound following the strong gains on Wall Street, we believe recession fears will continue to permeate investors’ sentiment in the near term. Meanwhile, investors may be watching the European Central Bank’s meeting and Malaysia’s inflation data later this week. On the commodity markets, the crude oil rebounded, trading above USD101 per barrel mark, while the CPO price hovered around RM3,600.
Sector focus: We expect the technology sector to track the overnight gains in Nasdaq. Meanwhile, selected consumer stocks and REITs may be viewed defensive and outperform during the volatile stock market environment. Traders may trade cautiously within the energy sector as oil price was pressured due to recession fears, albeit the Brent oil has rebounded above the USD100 level.
Stocks to watch:
Telco & Technology: D&O, DSONIC, DUFU, FRONTKN, GREATEC, INARI, TM
Consumer: FFB, FIAMMA, LAYHONG
Construction & Building materials: GAMUDA, MYCRON
Pharmaceutical: DPHARMA, PHARMA
Others: ECOMATE, KLCC, PGF, POS, PPJACK, TOYOVEN
Source: M+ Online
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