M+ Online Morning Market Buzz - 12Sep22

Dow Jones: 32,151.71 pts (+377.19pts, +1.19%)
⬆️ Resistance:  32900
⬇️ Support:  30500

FBM KLCI: 1,496.53 pts (+1.80pts, +0.12%)
⬆️ Resistance:  1530
⬇️ Support:  1460

HSI Index: 19,362.25 pts (+507.63pts, +2.69%)
⬆️ Resistance:  19900
⬇️ Support:  18500

Crude Palm Oil: RM3,594 (+RM53, +1.50%)
⬆️ Resistance:  4070
⬇️ Support:  3420

Brent Oil: $92.84 (+$3.69, +4.14%)
⬆️ Resistance:  99.00
⬇️ Support:  85.50

Gold: $1,716.83 (+$8.37, +0.49%)
⬆️ Resistance:  1770
⬇️ Support:  1660

M+ Online Technical Focus - 12Sep22
DRB-Hicom Bhd: Automotive segment to drive recovery prospects

Trading Catalyst
• Regarded as a diversified conglomerate with core businesses in six sectors, namely automotive, aerospace and defence, postal, banking, properties and services.
• Aims to beef up their export program till 2023 to Africa, South Asia and Southeast Asia region.
• Higher sales from automotive segment that is driven by the high backlog orders and introduction of new models will continue to bolster the group performance.
• Technically, traders may anticipate for a potential flag-formation breakout above RM1.59 to target the next resistances at RM1.70-1.75, with long term target at RM1.86.

Technical View

(i) DRBHCOM (S: RM1.48, R: RM1.70-1.75, LT TP: RM1.86, CL: RM1.47)

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

Economic Releases For The Week (12/9/2022-16/9/2022):

12/9/2022
MY - Malaysia's Retail Sales, 12.00PM
UK - United Kingdom's Manufacturing Production, 2.00PM
UK - United Kingdom's Industrial Production, 2.00PM

13/9/2022
JP - Japan's Producer Price Index, 7.50AM
UK - United Kingdom's Unemployment Rate, 2.00PM
EU - Eurozone's ZEW Economic Sentiment, 5.00PM
US - United States' Inflation Rate, 8.30PM

14/9/2022
JP - Japan's Machinery Orders, 7.50AM
JP - Japan's Industrial Production, 12.30PM
JP - Japan's Machinery Orders, 7.50AM
JP - Japan's Industrial Production, 12.30PM
UK - United Kingdom's Inflation Rate, 4.30PM
EU - Eurozone's Industrial Production, 5.00PM
US - United States' Producer Price Index, 8.30PM

15/9/2022
UK - United Kingdom's Bank of England's Interest Rate Decision, 7.00PM
UK - United Kingdom's Bank of England's Quantitative Easing, 7.00PM
US - United States' Retail Sales, 8.30PM
US - United States' Industrial Production, 9.15PM
US - United States' Manufacturing Production, 9.15PM

16/9/2022
CN - China's Industrial Production, 10.00AM
CN - China's Retail Sales, 10.00AM
UK - United Kingdom's Retail Sales, 2.00PM
EU - Eurozone's Inflation Rate, 5.00PM

Market update: The FBM KLCI ended the week on an upbeat note along with the regional markets, mainly lifted by the gains in the banking heavyweights following the OPR hike. We believe the local bourse is on pace for further upside after a broad-based rebound on Wall Street overnight, as investors could be taking a view that the CPI data is likely to decline and the Fed may be looking at a smaller hike going forward. Hence, the focus this week will be on the US and Eurozone’s inflation rate. Commodities wise, the crude oil price jumped above USD92 per barrel, while the crude palm oil hovered above RM3,550. 

Sector focus: The technology sector could be in the spotlight, tracking overnight gains in Nasdaq. Besides, investors may see buying interest building up in the energy counters following a rebound in crude oil price. Other sectors like building material, telco, medical-related may be on the way up ahead of Budget 2023.

Stocks to watch: 

Telco & Technology: CTOS, FPGROUP, GUH, KGB, MYTECH, PENTA, RAMSSOL, SAM, UWC, VIS
Consumer: ABLEGLOB, BJFOOD, MRDIY
Building material: CHINHIN, ENGTEX, PMETAL, PMBTECH, YBS
O&G: ARMADA, DELEUM, PCHEM
Others: ABMB, HARBOUR, HHGROUP, INNO, SCOMNET, YTLPOWR

Source: M+ Online

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