M+ Online Morning Market Buzz - 18 Oct 22

Dow Jones: 30,185.82 pts (+550.99pts, +1.86%)
⬆️ Resistance:  31100
⬇️ Support:  28100

FBM KLCI: 1,386.27 pts (+3.80pts, +0.27%)
⬆️ Resistance:  1430
⬇️ Support:  1350

HSI Index: 16,612.90 pts (+25.21pts, +0.15%)
⬆️ Resistance:  17600
⬇️ Support:  16000

Crude Palm Oil: RM3,905 (+RM18, +0.46%)
⬆️ Resistance:  3980
⬇️ Support:  3530

Brent Oil: $91.62 (-$0.01, -0.01%)
⬆️ Resistance:  98.40
⬇️ Support:  89.10

Gold: $1,650.09 (+$5.62, +0.34%)
⬆️ Resistance:  1720
⬇️ Support:  1610

M+ Online Technical Trading Stocks - 18 Oct 22

Stock Name: INFOTEC (0253)
Entry: Buy above RM0.39
Target: RM0.425 (9.0%), RM0.45 (15.4%)
Stop: RM0.365 (-6.4%)
Shariah: No
Technical: Hammer candle

Stock Name: HEXTAR (5151)
Entry: Buy above RM1.74
Target: RM1.82 (4.6%), RM1.93 (10.9%)
Stop: RM1.69 (-2.9%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

Market update: The FBM KLCI is attempting to find stability over the near term, ahead of the official GE15 date being announced. Meanwhile, China unexpectedly delayed the release of 3Q22 GDP that is scheduled today, which may imply that the data might not meet market expectations of +3.4% YoY. Back home, we reckon that the rebound on Wall Street may see buying interest spilling over on beaten down or oversold stocks over the near term. Still, the weakening trading liquidity and the persistent selling from foreign funds (net sell RM870.1m month-to-date) will keep bigger strides of gains at bay. Commodities wise, the crude oil price steadied above USD90, while the CPO price has inched above RM3,900.

Sector focus: The beaten down healthcare sector appears to look attractive and may extend their revival trend, backed by the prospects of improved outlook. The technology sector may stage a rebound to mirror the gains on Nasdaq overnight, while the stability in crude oil prices may lend some support to the energy sector.

Stocks to watch: 

Consumer: BJFOOD, OFI, SDS
Glove: COMFORT, DPHARMA, HEXCARE, KOSSAN
Construction & Building material: EMETALL, PGF, SCGBHD
Transportation & Logistics: HEXTECH, SYSCORP
Others: ABMB, ELSOFT, RGTBHD

Source: M+ Online

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