M+ Online Morning Market Buzz - 31 Oct 22

Dow Jones: 32,861.80 pts (+828.52pts, +2.59%)
⬆️ Resistance:  33600
⬇️ Support:  30600

FBM KLCI: 1,447.31 pts (-6.78pts, -0.47%)
⬆️ Resistance:  1490
⬇️ Support:  1420

HSI Index: 14,863.06 pts (-564.88pts, -3.66%)
⬆️ Resistance:  16400
⬇️ Support:  14500

Crude Palm Oil: RM3,989 (-RM158, -3.81%)
⬆️ Resistance:  4350
⬇️ Support:  3890

Brent Oil: $95.77 (-$1.19, -1.23%)
⬆️ Resistance:  99.30
⬇️ Support:  89.40

Gold: $1,644.86 (-$18.45, -1.11%)
⬆️ Resistance:  1710
⬇️ Support:  1610

M+ Online Technical Focus - 31 Oct 22
Harbour-Link Group Bhd: Riding the wave

Trading Catalyst
• An integrated logistics services provider, shipping and engages in construction works, heavy lifting and haulage as well as property development that owns a total of 12 container vessels.
• Domestic shipping between East and West Malaysia will continue to deliver consistent cargo volume and favorable freight rates whereby in 9M22, total trade grew by 32.9% YoY.
• Equipped with a healthy balance sheet with a net cash position of RM241.4m, translating to net cash per share of 60.3 sen (c.53.8% of share price).
• Technically, price has formed a short-term resistance breakout above RM1.10, targeting the next resistances at RM1.19-1.26 with long term target set at RM1.35.

Technical View

(i) HARBOUR (S: RM1.06, R: RM1.19-1.26, LT TP: RM1.35, CL: RM1.05)

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

Economic Releases For The Week (31/10/2022-4/11/2022):

31/10/2022
JP - Japan's Retail Sales, 7.50AM
JP - Japan's Industrial Production, 7.50AM
CN - China's NBS Manufacturing PMI, 9.30AM
CN - China's NBS Non-Manufacturing PMI, 9.30AM
JP - Japan's Consumer Confidence, 1.00PM
EU - Eurozone's 3Q22 GDP Growth Rate (Flash), 6.00PM
EU - Eurozone's Inflation Rate (Flash), 6.00PM
US - United States' Chicago PMI, 9.45PM

1/11/2022
JP - Japan's Jibun Bank Manufacturing PMI, 8.30AM
MY - Malaysia's S&P Global Manufacturing PMI, 8.30AM
CN - China's Caixin Manufacturing PMI, 9.45AM
UK - United Kingdom's S&P Global/CIPS Manufacturing PMI, 5.30PM
US - United States' S&P Global/CIPS Manufacturing PMI, 9.45PM
US - United States' ISM Manufacturing PMI, 10.00PM

2/11/2022
EU - Eurozone's S&P Global Manufacturing PMI, 5.00PM

3/11/2022
US - United States' Federal Reserve Interest Rate Decision, 2.00AM
CN - China's Caixin Services PMI, 9.45AM
CN - China's Caixin Composite PMI, 9.45AM
MY - Malaysia's Bank Negara's Interest Rate Decision, 3.00PM
UK - United Kingdom's S&P Global/CIPS Services PMI, 5.30PM
UK - United Kingdom's S&P Global/CIPS Composite PMI, 5.30PM
EU - Eurozone's Unemployment Rate, 6.00PM
UK - United Kingdom's Bank of England Interest Rate Decision, 8.00PM
UK - United Kingdom's Bank of England Quantitative Easing, 8.00PM
US - United States' S&P Global Services PMI, 9.45PM
US - United States' S&P Global Composite PMI, 9.45PM
US - United States' ISM Non-Manufacturing PMI, 10.00PM
US - United States' Factory Orders, 10.00PM

4/11/2022
JP - Japan's Jibun Bank Services PMI, 8.30AM
JP - Japan's Jibun Bank Composite PMI, 8.30AM
EU - Eurozone's S&P Global Services PMI, 5.00PM
EU - Eurozone's S&P Global Composite PMI, 5.00PM
EU - Eurozone's Producer Price Index, 6.00PM
US - United States' Unemployment Rate, 8.30PM

Market update: The FBM KLCI slipped on Friday as profit-taking activities within selected banking and energy heavyweights on the key index pulled the index lower. While Wall Street staged a massive comeback on Friday, investors may continue to monitor a series of event this week including the interest rate decision by the US Feds and Bank of England to gauge economic outlook and market directions going forward. On the local front, we believe investors’ focus may shift to GE15 theme at least for the near term. Commodities wise, the crude oil traded above USD95, while the CPO price tumbled below RM4,000. 

Sector focus: Construction, utilities, and banking stocks may be in focus as investors may position for the GE15 theme. Meanwhile, the technology sector is likely to be on the play following a surge in Nasdaq. On the contrary, the in CPO price could lead to some selling pressure in the plantation sector, but traders may focus on O&G stocks on the back of firmer oil price.

Stocks to watch: 

O&G: DAYANG, GASMSIA, PANTECH, UNISEM
Transportation & Logistics: AIRPORT, HARBOUR, SWIFT
Medical-related: CAREPLS, CENGILD, HARTA, KOSSAN, TMCLIFE
Telco: DIGI, MICROLN, TIMECOM, TM
Building material: MCEMENT, MSC
Technology: FPI, LGMS, UNISEM
Others: GENM, HEXTAR, MYNEWS, SAMAIDEN

Source: M+ Online

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