M+ Online Morning Market Buzz - 3 Oct 22 
 
Dow Jones: 28,725.51 pts (-500.10pts, -1.71%) 
⬆️ Resistance:  30500 
⬇️ Support:  28200 
 
FBM KLCI: 1,394.63 pts (-2.87pts, -0.21%) 
⬆️ Resistance:  1460 
⬇️ Support:  1370 
 
HSI Index: 17,222.83 pts (+56.96pts, +0.33%) 
⬆️ Resistance:  18500 
⬇️ Support:  16700 
 
Crude Palm Oil: RM3,416 (+RM74, +2.21%) 
⬆️ Resistance:  3690 
⬇️ Support:  3160 
 
Brent Oil: $85.14 (-$2.04, -2.34%) 
⬆️ Resistance:  92.00 
⬇️ Support:  82.00 
 
Gold: $1,660.61 (+$0.07, +0.00%) 
⬆️ Resistance:  1710 
⬇️ Support:  1590 
 
M+ Online Technical Focus - 3 Oct 22 
Sunway Real Estate Investment Trust: Improving traffic footfall and stable occupancy rate 
 
Trading Catalyst 
• One of the largest diversified REITs in Malaysia with 18 properties in Malaysia valued at RM8.74bn and maintained a healthy average occupancy rate across each segment; retail (94%), hotel (24%) and office (84%). 
• Improve contribution from the new wing of Sunway Carnival Mall and resumption of income contribution from phased re-opening of refurbished Sunway Resort. 
• Remains aggressive to expand asset portfolio by acquiring 2 contiguous parcels measuring 1.5-ha freehold industrial land in Petaling Jaya. 
• Technically, traders may anticipate for a rebound above RM1.43, to target the next resistances at RM1.47-1.54 with long term target set at RM1.58. 
 
Technical View 
 
(i) SUNREIT (S: RM1.33, R: RM1.47-1.54, LT TP: RM1.58, CL: RM1.32) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 
Economic Releases For The Week (3/10/2022-7/10/2022): 
 
3/10/2022 
JP - Japan's Jibun Bank Manufacturing PMI, 8.30AM 
MY - Malaysia's S&P Global Manufacturing PMI, 8.30AM 
EU - Eurozone's S&P Global Manufacturing PMI, 4.00PM 
UK - United Kingdom's S&P Global Manufacturing PMI, 4.30PM 
US - United States' S&P Global Manufacturing PMI, 9.45PM 
US - United States' ISM Manufacturing PMI, 10.00PM 
 
4/10/2022 
EU - Eurozone's Producer Price Index, 5.00PM 
US - United States' Factory Orders, 10.00PM 
 
5/10/2022 
JP - Japan's Jibun Bank Services PMI, 8.30AM 
JP - Japan's Jibun Bank Composite PMI, 8.30AM 
EU - Eurozone's S&P Global Services PMI, 4.00PM 
EU - Eurozone's S&P Global Composite PMI, 4.00PM 
UK - United Kingdom's S&P Global Services PMI, 4.30PM 
UK - United Kingdom's S&P Global Composite PMI, 4.30PM 
US - United States' S&P Global Services PMI, 9.45PM 
US - United States' S&P Global Composite PMI, 9.45PM 
US - United States' ISM Non-Manufacturing PMI, 10.00PM 
 
6/10/2022 
EU - Eurozone's Retail Sales, 5.00PM 
 
7/10/2022 
US - United States' Unemployment Rate, 8.30PM 
 
Market update: The FBM KLCI wrapped up 3Q22 with a downbeat note as prolonged bearish cue from the global markets coupled with continuous selling from foreign investors dragged the key index lower. We believe global market turmoil will likely to continue, stemming from fear over potential recession in view of the elevated inflation rate. However, we expect mild bargain hunting activities to emerge ahead of the Budget 2023 this week. Commodities wise, the crude oil price fell to trade around USD85, while the CPO gained momentum to close above RM3,410, tracking soybean oil gains.  
 
Sector focus: Investors may trade on healthcare, solar, and telecommunication related sectors prior to the tabling of Budget 2023 this week. Besides, market may gradually pick up on the transportation and logistics counters as Baltic Dry Index has been rising throughout September 2022. The plantation stocks may gain momentum in tandem with CPO price. 
 
Stocks to watch:  
 
Solar: CYPARK, SAMAIDEN 
Medical: HARTA, KOSSAN 
Plastic: RESINTC, TGUAN 
Telco: REDTONE 
Consumer: PTRB 
Property: TANCO, TROP 
Others: CITAGLB 
 
4Q22 Market Chat: Navigating the weak ringgit and high interest rate landscape

Navigating the weak ringgit and high interest rate landscape
•  Downside risks still prevail on the global markets given the (i) hawkish tone by the US Fed, (ii) ongoing tension between Ukraine-Russia and (iii) recession fear. 
•  However, there are some bright spots in the Malaysia’s market with the upcoming (i) Budget 2023, (ii) around-the-corner GE15 and (iii) rebounding Malaysia GDP. 
•  Thus, we like potential budget beneficiary sectors like solar, construction and telco. Meanwhile, for the export-oriented segments we favour plastic, selected technology, medical and chemical. 
•  For domestic related sector, we may focus on automotive and furniture.

4Q22 Stock picks:-

1.  ATECH (S: RM1.66-1.74, R: RM2.18-2.28, CL: RM1.62)
2.  CCK (S:RM0.55-0.58, R: 0.72-0.76, CL: RM0.53)
3.  GAMUDA (S: RM3.60-3.76, R: RM4.47-4.68, CL: RM3.56)
4.  HEXTAR (S: RM1.51-1.62, R: RM2.00-2.15, CL: RM1.47)
5.  KGB (S: RM1.15-1.26, R: RM1.52-1.63, CL: RM1.11)
6.  MYEG (S: RM0.715-0.785, R: RM1.00-1.08, CL: RM0.70)
7.  OPTIMAX (S: RM0.625-0.695, R: RM0.905-1.00, CL: RM0.61)
8.  PECCA (S: RM0.74-0.795, R: RM1.00-1.08, CL: RM0.720)
9.  SAMAIDEN (S: RM0.605-0.67, R: RM0.835-0.915, CL: RM  0.59)
10.  SCOMNET (S: RM1.24-1.39, R: RM1.89-2.05, CL: RM1.20)
11.  SIGN (S: RM1.44-1.61, R: RM2.00-2.15, CL: RM1.40)
12.  TGUAN (S: RM2.32-2.47, R: RM2.87-3.03, CL: RM2.28)
13.  TIMECOM (S: RM4.21-4.40, R: RM5.00-5.25, CL: RM4.17)

S: Support, R: Resistance, CL: Cut loss

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