M+ Online Morning Market Buzz - 20 Jul 22 
 
Dow Jones: 31,827.05 pts (+754.44pts, +2.43%) 
⬆️ Resistance:  32500 
⬇️ Support:  29600 
 
FBM KLCI: 1,428.76 pts (-0.78pts, -0.05%) 
⬆️ Resistance:  1460 
⬇️ Support:  1390 
 
HSI Index: 20,661.06 pts (-185.12pts, -0.89%) 
⬆️ Resistance:  21500 
⬇️ Support:  19900 
 
Crude Palm Oil: RM3,916 (+RM104, +2.73%) 
⬆️ Resistance:  4180 
⬇️ Support:  3420 
 
Brent Oil: $107.35 (+$1.08, +1.02%) 
⬆️ Resistance:  109.80 
⬇️ Support:  92.70 
 
Gold: $1,711.67 (+$2.45, +0.14%) 
⬆️ Resistance:  1790 
⬇️ Support:  1670 

M+ Online Technical Focus - 20 Jul 22 
Chin Hin Group Bhd: Streamlining business segments 
 
Trading Catalyst 
• Engages in the manufacturing and distribution of building materials, property development, construction, home and living and solar energy. 
• Acquisition of 24.7% equity stake in Ajiya Bhd is deem to be earnings accretive which allows CHINHIN to expand their product offerings in the building materials business segment. 
• Outstanding construction orderbook of approximately RM800.0m will provide long term earnings visibility till 2025. 
• Technically, traders may anticipate for a potential breakout above RM3.40 to target the next resistances at RM3.60-3.83 with long term target at RM4.00. 
 
Technical View 
 
(i) CHINHIN (S: RM3.11, R: RM3.60-3.83, LT TP: RM4.00, CL: RM3.10) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 

Market update: The FBM KLCI booked marginal losses as investors remained on the sidelines while waiting for fresh market leads. Nevertheless, sentiment on the local bourse should improve after mild profit taking activities yesterday, tracking the sharp rally on Wall Street overnight buoyed by strong corporate earnings. Commodity wise, the Brent crude oil price improved, trading above USD107 per barrel mark on the back of resumed worries over tight supply. Meanwhile, the CPO rebounded to trade above RM3,900. 

Sector focus: Following the strong rebound on Wall Street, we expect the technology sector to further rebound amid spillover buying interest on the local tech stocks. Meanwhile, we believe trading interest may emerge in the energy sector amid a strong rebound in crude oil price. Also, consumer, transportation and logistics sector may turn out to be the winner under the recovery theme.

Stocks to watch: 

Consumer: ECOMATE, FIAMMA, UCHITEC
Construction & Building materials: GAMUDA
Telco & Technology: GENETEC, MPI, PENTA, UNISEM, UWC, WONG
Transportation & Logistics: CAPITALA, SYSCORP
Chemicals: HEXIND, HEXTAR
Others: AFFIN, GOB, MGRC, PGF

Source: M+ Online

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