M+ Online Morning Market Buzz - 20 Oct 22

Dow Jones: 30,423.81 pts (-99.99pts, -0.33%)
⬆️ Resistance:  31500
⬇️ Support:  28100

FBM KLCI: 1,415.10 pts (+14.74pts, +1.05%)
⬆️ Resistance:  1450
⬇️ Support:  1350

HSI Index: 16,511.28 pts (-403.30pts, -2.38%)
⬆️ Resistance:  17400
⬇️ Support:  16000

Crude Palm Oil: RM4,151 (+RM33, +0.80%)
⬆️ Resistance:  4250
⬇️ Support:  3530

Brent Oil: $92.41 (+$2.38, +2.64%)
⬆️ Resistance:  97.10
⬇️ Support:  87.00

Gold: $1,629.44 (-$22.78, -1.38%)
⬆️ Resistance:  1720
⬇️ Support:  1600

M+ Online Technical Trading Stocks - 20 Oct 22

Stock Name: CIMB (1023)
Entry: Buy above RM5.38
Target: RM5.55 (3.2%), RM5.70 (5.9%)
Stop: RM5.23 (-2.8%)
Shariah: No
Technical: Resistance breakout

Stock Name: INNO (6262)
Entry: Buy above RM1.47
Target: RM1.62 (10.2%), RM1.70 (15.6%)
Stop: RM1.38 (-6.1%)
Shariah: Yes
Technical: Bottom rebound

Market update: Banking-led rallies kept the FBM KLCI above the key 1,400 level after the greater-than-expected special dividend by AFFIN. However, we opine that the rebound may remain fragile as investors may weigh potential global recession concerns over the recent reporting season on Wall Street as the spike in UK inflation spooked the markets. Nevertheless, traders may look at companies with strong balance sheet to invest in the long run. Commodities wise, the crude oil price hovered above the USD90 per barrel mark, while the CPO price surged above RM4,150 on worries over impact of tropical storms on palm oil production in East Malaysia and Kalimantan. 

Sector focus: The healthcare stocks may extend mild gains given their attractive valuation, but risk of being excluded from the FBM KLCI in the upcoming review might capped the upside reward. Meanwhile, investors may favour the plantation stocks as worries over supply disruption may push the CPO price higher.

Stocks to watch: 

Consumer: CYL, REVENUE, SDS
Building material: MCEMENT, PGF, PMETAL, ULICORP
Medical related: CENGILD, DPHARMA
Furniture:  EVERGRN, SIGN
O&G: PANTECH, PCHEM
Plantation: BPLANT, INNO
Others: BAUTO, HEXTAR, MICROLN, MYTECH, TEXCHEM 

Source: M+ Online

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