M+ Online Morning Market Buzz - 5 Oct 22

Dow Jones: 30,316.32 pts (+825.43pts, +2.80%)
⬆️ Resistance:  31000
⬇️ Support:  28200

FBM KLCI: 1,409.36 pts (+11.74pts, +0.84%)
⬆️ Resistance:  1440
⬇️ Support:  1360

HSI Index: 17,079.51 pts (-143.32pts, -0.83%)
⬆️ Resistance:  18100
⬇️ Support:  16600

Crude Palm Oil: RM3,766 (+RM152, +4.21%)
⬆️ Resistance:  3710
⬇️ Support:  3160

Brent Oil: $91.80 (+$2.94, +3.31%)
⬆️ Resistance:  94.30
⬇️ Support:  82.60

Gold: $1,726.13 (+$26.24, +1.54%)
⬆️ Resistance:  1770
⬇️ Support:  1590

M+ Online Technical Focus - 5 Oct 22
Mr D.I.Y. Group (M) Bhd: Aggressive store expansion

Trading Catalyst
• Started off since July 2005 and has evolved into the largest home improvement retailer with more than 850 stores across Malaysia and Brunei.
• Remains committed to expand their reach as the group targets to open 180 stores in 2022 after close to 100 stores opened in 2H22.
• Consumer spending remains robust as retail trade in Malaysia continues to record improvement (+37.5% YoY) in July 2022.
• Technically, price has formed a short-term breakout above RM2.00 and may target the next resistances at RM2.13-2.18 with long term target at RM2.36.

Technical View

(i) MRDIY (S: RM1.90, R: RM2.13-2.18, LT TP: RM2.36, CL: RM1.89)

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

Source: Bloomberg, M+ Online
 

Market update: The FBM KLCI witnessed further gains as selected telecommunication, consumer, and banking heavyweights lifted the key index; the foreign funds turned net buyer after a 14-session selloff. We believe the local bourse may set for further recovery on the back of stronger oil price, coupled with bargain hunting activities ahead of the tabling of Budget 2023. On the commodity markets, the crude oil surged above USD91 per barrel after American Petroleum Institute reported a surprise draw, while the CPO price hovered above RM3,750. 

Sector focus: We opine that the buying momentum in telecommunications, solar-related, and selected consumer stocks are likely to sustain towards the tabling of Budget 2023. Meanwhile, investors may put energy stocks on radar with the rebound in crude oil price. In view of the overnight rally in Wall Street Nasdaq, investors may also see follow-through buying interest in the technology counters.

Stocks to watch: 

Technology: AWANTEC, FPGROUP, UWC
O&G: DAYANG, RL
Consumer: INNATURE, PCCS
Construction & Building material: KAB, PGF
Healthcare: HARTA, OPTIMAX
Solar: CYPARK, PEKAT
Transportation & Logistics: CAPITALA, SYSCORP 
Others: BAUTO, PPJACK, REDTONE

Source: M+ Online

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