M+ Online Morning Market Buzz - 19Sep22

Dow Jones: 30,822.42 pts (-139.40pts, -0.45%)
⬆ Resistance:  33200
⬇ Support:  30200

FBM KLCI: 1,467.31 pts (-1.13pts, -0.08%)
⬆ Resistance:  1540
⬇ Support:  1440

HSI Index: 18,761.69 pts (-168.69pts, -0.89%)
⬆ Resistance:  19900
⬇ Support:  18400

Crude Palm Oil: RM3,724 (-RM132, -3.42%)
⬆ Resistance:  4000
⬇ Support:  3420

Brent Oil: $91.63 (+$0.79, +0.87%)
⬆ Resistance:  97.80
⬇ Support:  85.50

Gold: $1,675.06 (+$9.95, +0.60%)
⬆ Resistance:  1770
⬇ Support:  1660

M+ Online Technical Focus - 19Sep22
Poh Huat Resources Holdings Bhd: Benefitting from strengthening of USD

Trading Catalyst
• Operates at a production space in excess of 3.5m sqf in both Malaysia and Vietnam with products sold to over 60 countries in 5 continents across the globe.
• A one-stop furniture manufacturer; well equipped to capitalise on the stronger demand from the US-China trade diversion strengthening of USD.
• Demand to remain stable premised to the rising adoption of work-from-policy.
• Technically, price has formed a flag-formation breakout above RM1.42 which may propel share price higher towards the next resistances at RM1.51-RM1.57 with long term target at RM1.64.

Technical View

(i) POHUAT (S: RM1.38, R: RM1.51-1.57, LT TP: RM1.64, CL: RM1.37)

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

Economic Releases For The Week (19/9/2022-23/9/2022):

20/09/2022
JP - Japan's Inflation Rate, 7.30AM

21/09/2022
US - United States' Existing Home Sales, 10.00PM

22/09/2022
US - United States' Federal Reserve Interest Rate Decision, 2.00AM
JP - Japan's Bank of Japan's Interest Rate Decision, 11.00AM
UK - United Kingdom's Bank of England's Interest Rate Decision, 7.00PM

23/09/2022
MY - Malaysia's Inflation Rate, 12.00PM

Market update The FBM KLCI slipped into the negative territory at the closing bell on Friday as sentiment remained fragile prior to the Malaysia Day holiday weekend. All eyes should be on the US Fed’s September meeting and Malaysia’s inflation rate this week. Hence, the local bourse may continue to see sideways trading tone along with the regional peers as investors preparing for further interest rate hikes by the US Fed. Commodities wise, the crude oil price was above USD91 per barrel mark, while the CPO is hovering below RM3,900. 

Sector focus: The technology sector should remain under pressure overall in line with the sentiment on Wall Street. Meanwhile, investors may look out for stocks in the banking, telco, consumer sectors, as well as building material to prepare for October’s Budget tabling. Other sectors that we like include export-oriented and energy.

Stocks to watch: 

O&G: ARMADA, COASTAL, GASMSIA, UZMA
Building material: AJIYA, EFRAME
Tech & Technology: OCK, REDTONE, SAM
Automotive: DRBHCOM, UMW
Consumer: BJFOOD, LTKM, PADINI
Packaging-related: SCIENTX, TGUAN
Medical-related: OPTIMAX, SCOMNET
Furniture-related: POHUAT, SIGN

Source: M+ Online
 

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