M+ Online Morning Market Buzz - 4 Oct 22

Dow Jones: 29,490.89 pts (+765.38pts, +2.66%)
⬆️ Resistance:  30500
⬇️ Support:  28200

FBM KLCI: 1,397.62 pts (+2.99pts, +0.21%)
⬆️ Resistance:  1450
⬇️ Support:  1360

HSI Index: 17,079.51 pts (-143.32pts, -0.83%)
⬆️ Resistance:  18300
⬇️ Support:  16600

Crude Palm Oil: RM3,480 (+RM54, +1.58%)
⬆️ Resistance:  3670
⬇️ Support:  3160

Brent Oil: $88.86 (+$0.90, +1.02%)
⬆️ Resistance:  92.00
⬇️ Support:  82.40

Gold: $1,699.89 (+$39.28, +2.37%)
⬆️ Resistance:  1740
⬇️ Support:  1590

M+ Online Technical Focus - 4 Oct 22
Taliworks Corporation Bhd: Better earnings visibility ahead

Trading Catalyst
• An established infrastructure-related company that involves in 5 key areas in water-related, highway concession, waste management, engineering & construction and renewable energy.
• Contribution from Sg. Rasau project is still at infant stage and may start to speed up in coming quarters.
• Leveraging onto the Budget 2023 announcement, particularly within the water-related infrastructure related projects.
• Technically, price has formed a bullish candle and price may stage further recovery to target the next resistances at RM0.96-0.985 with long term target at RM1.00.

Technical View

(i) TALIWRK (S: RM0.88, R: RM0.96-0.985, LT TP: RM1.00, CL: RM0.875)

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

Source: Bloomberg, M+ Online
 

Market update: Following a heavy selldown in the past week due to continuous outflow of foreign funds, the FBM KLCI bounced higher. Given the strong rebound on Wall Street overnight, we believe the regional markets and local bourse should continue to rebound higher. Nevertheless, the rebound may sit on a shaky ground due to lingering global recession fears and lack of fresh positive catalysts; investors may take the opportunity to sell into strength. Commodities wise, the crude oil price signalled a comeback to trade above USD88 per barrel, while the CPO price hovered around RM3,480.  

Sector focus: We believe investors will focus on the tabling of Budget 2023 which is scheduled on 7th October 2022 moving forward. Sectors such as solar related, construction, and telecommunication may see some buying interest. Meanwhile, the rising crude oil may lift the energy counters over the near term. Also, with the rebound in Nasdaq, the technology stocks should be on the radar.
Stocks to watch: 

Technology: AWANTEC, CFM, MICROLN, PERTAMA
O&G: DAYANG, RL
Construction & Building material: AJIYA, NESTCON 
Furniture: ECOMATE, TAFI
Others: CYPARK, PCCS, PPJACK, RESINTC

Source: M+ Online
 

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