M+ Online Morning Market Buzz - 14Sep22

Dow Jones: 31,104.97 pts (-1276.37pts, -3.94%)
⬆️ Resistance:  33200
⬇️ Support:  30400

FBM KLCI: 1,487.84 pts (-10.12pts, -0.68%)
⬆️ Resistance:  1540
⬇️ Support:  1460

HSI Index: 19,326.86 pts (-35.39pts, -0.18%)
⬆️ Resistance:  19900
⬇️ Support:  18500

Crude Palm Oil: RM3,851 (-RM47, -1.21%)
⬆️ Resistance:  4000
⬇️ Support:  3420

Brent Oil: $93.17 (-$0.83, -0.88%)
⬆️ Resistance:  97.50
⬇️ Support:  85.50

Gold: $1,702.17 (-$22.37, -1.30%)
⬆️ Resistance:  1770
⬇️ Support:  1660

M+ Online Technical Focus - 14Sep22
Frontken Corporation Bhd: Firing all cylinders

Trading Catalyst
• Regarded as one of the leading providers of (i) support services to the semiconductor industry, (ii) surface treatment and mechanical engineering solutions, serving a wide-range of industries.
• Rising orders for provision of manpower supply and mechanical rotating equipment services with PETRONAS is expected to drive growth.
• Leverage onto the persistent high demand of semiconductor chips over the foreseeable future, while the weakening Ringgit against the USD also bodes well.
• Technically, traders may anticipate for further recovery towards the next resistances at RM2.97-3.14 with long term target at RM3.38.

Technical View

(i) FRONTKN (S: RM2.63, R: RM2.97-3.14, LT TP: RM3.38, CL: RM2.62)

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

Market update: The FBM KLCI remained beneath the key 1,500 level as profit taking activities emerged in selected banking and industrial products & services heavyweights. We believe the market sentiment may turn negative again following a sharp selldown on Wall Street triggered by a stubbornly high inflation, which will prompt the US Fed to maintain its hawkish stance at least for the near term. Commodities wise, the crude oil price hovered around USD93, while the CPO traded above RM3,850. 

Sector focus: We are expecting an overall decline on Bursa exchange, with the technology taking the biggest hit, in tandem with the Nasdaq’s selldown. However, we believe there could be some sweet spot within defensive stocks such as within the banking and consumer sector. Meanwhile, we expect bargain hunting activities to emerge within the energy sector as the Brent crude oil price is above USD90.

Stocks to watch: 

O&G: ARMADA, COASTAL, UZMA 
Transportation & Logistics: CAPITALA, HARBOUR, SWIFT
Chemical-related: HEXTAR, TEXCHEM
Power-related: SAMAIDEN, TENAGA
Telco: THETA, TM
Others: AMBANK, PECCA, REVENUE, SIGN, YBS

Source: M+ Online

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