M+ Online Morning Market Buzz - 21Sep22

Dow Jones: 30,706.23 pts (-313.45pts, -1.01%)
⬆️ Resistance:  32000
⬇️ Support:  29900

FBM KLCI: 1,461.10 pts (+9.58pts, +0.66%)
⬆️ Resistance:  1520
⬇️ Support:  1420

HSI Index: 18,781.42 pts (+215.45pts, +1.16%)
⬆️ Resistance:  19400
⬇️ Support:  18200

Crude Palm Oil: RM3,757 (+RM20, +0.54%)
⬆️ Resistance:  3980
⬇️ Support:  3560

Brent Oil: $90.62 (-$1.38, -1.50%)
⬆️ Resistance:  97.80
⬇️ Support:  86.80

Gold: $1,664.89 (-$10.95, -0.65%)
⬆️ Resistance:  1750
⬇️ Support:  1630

M+ Online Technical Focus - 21Sep22
BP Plastics Holdings Bhd: Expansion progressing well

Trading Catalyst
• A specialty plastics packaging manufacturer with more than 30 years of experience in the industry and has close to 700 customer base.
• To commission the 10th Cast Stretch Film machine to boost production by additional 11kMT/m in 1Q23 amid the rising demand.
• Softening of resin prices amid the increasing new supply stream and weaker demand from China bodes well, given that ASP has yet to retrace in tandem.
• Technically, traders may anticipate for a potential flag-formation breakout above RM1.49 to target the next resistances at RM1.60-RM1.70 with long term target at RM1.88.

Technical View

(i) BPPLAS (S: RM1.4, R: RM1.60-1.70, LT TP: RM1.88, CL: RM1.39)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI staged a rebound from last week’s selldown as investors snapped up selected banking heavyweights. Nevertheless, we believe the widespread rout on Wall Street overnight over the aggressive rate hikes concerns will spill over to the regional markets and the local bourse. Meanwhile, foreign funds remained in a selling undertone (5-day net foreign selling: RM261.4m). Commodities wise, the crude oil price dropped, trading around the USD90 per barrel mark, while the CPO traded above RM3,750. 

Sector focus: The technology sector may track the losses in Nasdaq overnight and trade on a cautious tone ahead of the FOMC meeting. On the other hand, market may favour the banking sector under the interest rate upcycle environment. Also, we like the construction and building materials sector ahead of the Budget 2023 and election talks. Besides, plastic manufacturers could bode well under the weaker ringgit environment.

Stocks to watch: 

Technology: ATECH, D&O, KGB, OPENSYS, PENTA, SKPRES 
Consumer: BJFOOD, UCHITEC
Telco: REDTONE, TIMECOM
Plastic: BPPLAS, TGUAN
Construction & Building material: EMETALL, GAMUDA, YBS 
Others: FM, MAYBANK, PANTECH, PECCA, SAMAIDEN, SCOMNET

Source: M+ Online
 

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