M+ Online Morning Market Buzz - 10 Aug 22

Dow Jones: 32,774.41 pts (-58.13pts, -0.18%)
⬆️ Resistance:  33800
⬇️ Support:  31900

FBM KLCI: 1,497.68 pts (+1.65pts, +0.11%)
⬆️ Resistance:  1540
⬇️ Support:  1460

HSI Index: 20,003.44 pts (-42.33pts, -0.21%)
⬆️ Resistance:  20700
⬇️ Support:  19300

Crude Palm Oil: RM4,153 (+RM34, +0.83%)
⬆️ Resistance:  4280
⬇️ Support:  3620

Brent Oil: $96.31 (-$0.34, -0.35%)
⬆️ Resistance:  104.50
⬇️ Support:  91.00

Gold: $1,794.29 (+$5.33, +0.30%)
⬆️ Resistance:  1840
⬇️ Support:  1720

M+ Online Technical Focus - 10 Aug 22
Kerjaya Prospek Group Bhd: Healthy orderbook to anchor growth

Trading Catalyst
• One of Malaysia’s leading construction players with strong historical track record of completion of notable projects such as St. Mary Residences, The Shore Mixed Commercial Development, EcoSky Condominum and Vista Residences.
• Well equipped with an unbilled orderbook of RM4.30bn that represents an orderbook-to-cover-ratio of 4.4x against FY21 revenue of RM964.9m will provide earnings visibility for the next 5 years.
• Established historical track record in the construction of local residential and commercial buildings with strong ability to replenish their orderbook.
• Technically, traders may anticipate for a trendline breakout above RM1.17 to target the next resistances at RM1.24-1.29 with long term target at RM1.37.

Technical View

(i) KERJAYA (S: RM1.08, R: RM1.24-1.29, LT TP: RM1.37, CL: RM1.07)

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

Market update: The FBM KLCI booked marginal gains amid lacklustre trading as cautious undertone remained in place ahead of the US inflation data that will be released later tonight. With the Wall Street overnight ended negative, we opine that the investors may stay sidelines for the session. Upside potential might be capped by the elevating global risks such as China-Taiwan tension and heightened inflationary pressures environment. However, traders are likely to position themselves selectively ahead of the August reporting month as foreign buying remains positive over the past few days. Commodities wise, the crude oil price hovered around USD96, while the CPO price traded above RM4,150. 

Sector focus: The banking sector may continue to shine amid interest rate upcycle especially ahead of the earnings season. Investors may focus on defensive stocks in sectors such as REIT, solid consumer and utilities. Meanwhile, the CPO price trading above RM4,150 could be a slight positive catalyst to the plantation sector.

Stocks to watch: 

Building material: ANNJOO, PMBTECH, YBS
Property & REITs: GOB, SIMEPROP, SPSETIA
Telco: MAXIS, TM
O&G: COASTAL, DIALOG, RL
Power-related: KPOWER, SLVEST, TENAGA
Finance: ABMB, BURSA
Others: HEXTAR, HSSEB, PCCS, RESINTC, SENFONG, SUPERMX, TAFI, TASCO

Source: M+ Online

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