M+ Online Morning Market Buzz - 11 Oct 22

Dow Jones: 29,202.88 pts (-93.91pts, -0.32%)
⬆️ Resistance:  31100
⬇️ Support:  28500

FBM KLCI: 1,406.00 pts (-14.43pts, -1.02%)
⬆️ Resistance:  1460
⬇️ Support:  1380

HSI Index: 17,216.66 pts (-523.39pts, -2.95%)
⬆️ Resistance:  18600
⬇️ Support:  16900

Crude Palm Oil: RM3,837 (+RM137, +3.70%)
⬆️ Resistance:  3930
⬇️ Support:  3370

Brent Oil: $96.19 (-$1.73, -1.77%)
⬆️ Resistance:  100.80
⬇️ Support:  87.10

Gold: $1,668.61 (-$26.21, -1.55%)
⬆️ Resistance:  1770
⬇️ Support:  1640

M+ Online Technical Focus - 11 Oct 22
Econframe Bhd: Total door solution provider

Trading Catalyst
• Regarded as a total door solution provider, specialising in the manufacturing and distribution of metal door frames and metal window frames that operates 2 factories with total built up of 17,400 sqf.
• To be kept busy with the order deliveries following the resumption of properties handover.
• Proposed a bonus issue of 1 warrant for every 2 existing shares that is target to complete in 2H22 will also entice trading activities.
• Technically, traders may anticipate for a potential breakout above RM0.655 to target the next resistances at RM0.685-0.70 with long term target at RM0.75.

Technical View

(i) EFRAME (S: RM0.62, R: RM0.685-0.7, LT TP: RM0.75, CL: RM0.615)

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

Economic Releases For The Week (10/10/2022-14/10/2022):

11/10/2022
MY - Malaysia's Unemployment Rate, 12.00PM
UK - United Kingdom's Unemployment Rate, 2.00PM

12/10/2022
JP - Japan's Machinery Orders, 7.50AM
MY - Malaysia's Industrial Production, 12.00PM
MY - Malaysia's Retail Sales, 12.00PM
UK - United Kingdom's Industrial Production, 2.00PM
UK - United Kingdom's Manufacturing Production, 2.00PM
EU - Eurozone's Industrial Production, 5.00PM
US - United States' Producer Price Index, 8.30PM

13/10/2022
US - United States' FOMC Minutes, 2.00AM
JP - Japan's Producer Price Index, 7.50AM
US - United States' Inflation Rate, 8.30PM

14/10/2022
CN - China's Inflation Rate, 9.30AM
CN - China's Producer Price Index, 9.30AM
US - United States' Retail Sales, 8.30PM
US - United States' Michigan Consumer Sentiment (Preliminary), 10.00PM

M+ Online Technical Trading Stocks - 11 Oct 22

Stock Name: AWANTEC (5204)
Entry: Buy above RM0.475
Target: RM0.515 (8.4%), RM0.530 (11.6%)
Stop: RM0.430 (-9.5%)
Shariah: Yes
Technical: Bullish engulfing candle

Stock Name: TELADAN (0230)
Entry: Buy above RM1.080
Target: RM1.150 (6.5%), RM1.180 (9.3%)
Stop: RM1.000 (-7.4%)
Shariah: Yes
Technical: Uptrend Intact

Source: Bloomberg, M+ Online

Market update: Another wave of selling pressure hit the FBM KLCI on Friday as investors mulled over the Budget 2023 and bearish sentiment on the regional markets. We believe all eyes will turn to the upcoming GE15 following the dissolution of parliament announced yesterday. The broad market may trade lower given the uncertainties ahead of the GE15, while foreign investors may extend its selling activities since last week. Commodities wise, the crude oil price sustained above USD94 per barrel mark, while the CPO price continued to hover above RM3,750. 

Sector focus: The broader market may attract selling pressure with the dissolution of parliament, but the investors will focus on GE15 theme, and may shift their attention to sectors such as construction, utilities, as well as selected government-related stocks. Besides, the bullish crude oil price may add shine to the energy stocks. On the other hand, the technology sector could see further selldown as Nasdaq slid to close at 2-year low.

Stocks to watch: 

Consumer: BAUTO, INNATURE
Construction & Building material: EFRAME, NESTCON PMBTECH
Transportation & Logistics: CAPITALA, HEXTECH, SYSCORP
Telco: MICROLN, OCK
Property: TELADAN 
Technology: AWANTEC, DSONIC, EG, PERTAMA 
Others: APB, HEXTAR, MIECO

Source: M+ Online

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