M+ Online Morning Market Buzz - 9 Nov 22

Dow Jones: 33,160.83 pts (+333.83pts, +1.02%)
⬆️ Resistance:  34100
⬇️ Support:  31100

FBM KLCI: 1,441.35 pts (-0.77pts, -0.05%)
⬆️ Resistance:  1490
⬇️ Support:  1400

HSI Index: 16,557.31 pts (-38.60pts, -0.23%)
⬆️ Resistance:  17200
⬇️ Support:  15000

Crude Palm Oil: RM4,399 (+RM38, +0.87%)
⬆️ Resistance:  4590
⬇️ Support:  4170

Brent Oil: $95.36 (-$2.56, -2.61%)
⬆️ Resistance:  101.60
⬇️ Support:  92.20

Gold: $1,712.42 (+$36.79, +2.20%)
⬆️ Resistance:  1760
⬇️ Support:  1590

M+ Online Technical Focus - 9 Nov 22
Poh Huat Resources Holdings Bhd: Strengthening of USD is a boon

Trading Catalyst
• Operates at a production space in excess of 3.5m sqf in both Malaysia and Vietnam with products sold to over 60 countries in 5 continents across the globe.
• Upward revision in selling prices since January 2022 and the stronger USD against Ringgit may keep margins intact over the foreseeable future.
• Demand is also expected to remain solid as demonstrated in 7M22 whereby Malaysia’s furniture export expanded 18.1% YoY to RM8.50bn.
• Technically, traders may anticipate for a potential breakout above RM1.38 to target the next resistances at RM1.44-RM1.47 with long term target at RM1.57.

Technical View

(i) POHUAT (S: RM1.32, R: RM1.44-1.47, LT TP: RM1.57, CL: RM1.31)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI ended marginally lower as investors traded cautiously prior to the US midterm elections, but inflow of foreign funds continued for the 3rd consecutive day. With the Wall Street continuing its recent gains ahead of the inflation data, we believe the market is expecting the CPI data to decline and the US Fed could pivot. However, our view is that the CPI data will remain elevated at least for the rest of 2022. Given the concerns over China’s ongoing zero-Covid policy to weigh on the economy, we believe investors will position themselves using the earnings season, as well as GE15 as the near-term catalysts. Commodities wise, the Brent oil price is hovering around USD95, while the CPO price is trading around RM4,400. 

Sector focus: The technology stocks may climb with the US Nasdaq climbing for the third session. Meanwhile, investors may favour breweries stocks in view of the solid results from HEIM as part of their strategy to position ahead of 2022 FIFA World Cup. Gloves momentum may sustain despite weaker results from HARTA.

Stocks to watch: 

Consumer: PRLEXUS, PWROOT
Gloves: CAREPLS, SUPERMX, TOPGLOV
Technology: GREATEC, GTRONIC
Building material: AJIYA
O&G: HENGYUAN, UZMA
Others: KMLOONG, PPJACK, RGTBHD, SWIFT

Source: M+ Online

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