M+ Online Morning Market Buzz - 27 Jul 22

Dow Jones: 31,761.54 pts (-228.50pts, -0.71%)
⬆️ Resistance:  32900
⬇️ Support:  31000

FBM KLCI: 1,463.69 pts (-5.53pts, -0.38%)
⬆️ Resistance:  1500
⬇️ Support:  1410

HSI Index: 20,905.88 pts (+342.94pts, +1.67%)
⬆️ Resistance:  21600
⬇️ Support:  20000

Crude Palm Oil: RM3,736 (-RM51, -1.35%)
⬆️ Resistance:  4120
⬇️ Support:  3550

Brent Oil: $104.40 (-$0.75, -0.71%)
⬆️ Resistance:  109.60
⬇️ Support:  99.50

Gold: $1,717.32 (-$2.46, -0.14%)
⬆️ Resistance:  1780
⬇️ Support:  1650

M+ Online Technical Focus - 27 Jul 22 
CTOS Digital Bhd: Onto M&A spree 
 
Trading Catalyst 
• Solutions and services are widely used by Malaysia’s banking and financial institutions, insurance and telecommunication companies, large corporations, SMEs as well as consumers for self-checking. 
• Proposed to acquire 19.9% stake in RAM Holdings Bhd and in collaboration with PolicyStreet.com to venture into car insurance and road tax renewal services. 
• To replicate their leading position in the credit reporting business in Malaysia into other regional markets. 
• Technically, traders may anticipate for a potential flag-formation breakout above RM1.31 to target next resistances at RM1.38-1.46 with long term target set at RM1.60. 
 
Technical View 
 
(i) CTOS (S: RM1.24, R: RM1.38-1.46, LT TP: RM1.60, CL: RM1.23) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 

Market update: The FBM KLCI slipped after four straight session gains as investors braced for a possible US interest rate hike. Also, as the 2Q22 US GDP data will be released on the 28th of July, investors should prepare for more volatility over the near term, as recession fears may return as the US economy contracted in 1Q. Hence, stocks with defensive characteristics may be in focus. Commodities wise, the Brent crude oil and CPO prices stabilised around USD104 and RM3,700 respectively, but we expect the CPO price may see further weakness amid returning export from Indonesia. 

Sector focus: The REITs and consumer sectors may see resilient movement as defensive stocks amid the market volatility. On the contrary, selected technology stocks may take a beating ahead of the possible interest rate hike in the US, tracking the pullback in Nasdaq overnight.

Stocks to watch:

Consumer: BONIA, FIAMMA, PADINI
Building material: AJIYA, CHINWEL
Healthcare: DPHARMA, MGRC, SCOMNET, SUPERMX
Chemical: ANCOMNY, TEXCHEM
O&G: DAYANG, PANTECH
Technology: CORAZA, CTOS, D&O, DUFU, FRONTKN, SFPTECH, SKPRES
Property: KSL, SPSETIA
Others: AMBANK, SCNWOLF, SENFONG, SWIFT
 
Source: M+ Online
 

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