M+ Online Morning Market Buzz - 23 Nov 22

Dow Jones: 34,098.10 pts (+397.82pts, +1.18%)
⬆️ Resistance:  34800
⬇️ Support:  32600

FBM KLCI: 1,441.29 pts (-6.67pts, -0.46%)
⬆️ Resistance:  1490
⬇️ Support:  1400

HSI Index: 17,424.41 pts (-231.50pts, -1.31%)
⬆️ Resistance:  18800
⬇️ Support:  17000

Crude Palm Oil: RM4,033 (+RM29, +0.72%)
⬆️ Resistance:  4210
⬇️ Support:  3720

Brent Oil: $88.36 (+$0.91, +1.04%)
⬆️ Resistance:  96.70
⬇️ Support:  80.70

Gold: $1,740.25 (+$2.20, +0.13%)
⬆️ Resistance:  1830
⬇️ Support:  1700

M+ Online Technical Focus - 23 Nov 22
Coastal Contracts Bhd: Re-positioning as a gas processing player

Trading Catalyst
• History traces back to 1976 and has now evolved into a global integrated marine oil & gas services and solutions provider.
• Planning to bid for a third plant in Ixachi that could have a similar value to its EMC Papan project which was valued at RM4.50bn.
• Will focus on investments in production-related infrastructure projects, with a preference for natural gas, which is a clean energy source with lesser greenhouse gas emissions.
• Technically, the breakout above RM2.14 has confirmed the breakout-pullback-continuation pattern and may lead price higher to target the next resistances at RM2.24-2.29 with long term target at RM2.40.

Technical View

(i) COASTAL (S: RM2.03, R: RM2.24-2.29, LT TP: RM2.40, CL: RM2.02)

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

Market update: The FBM KLCI slipped for another session with persisted foreign outflow as investors remained focused on the pending selection of Malaysia’s 10th Prime Minister. Meanwhile, Wall Street advanced overnight on the back of solid company earnings the positive momentum, this positive momentum could spill over to the regional markets. However, we believe the upside on the local front could be capped due to the fluid developments in the political scene, and greater clarity on that required boosting investors’ confidence. Commodities wise, the crude oil price rose above USD88, while the CPO price climbed above RM4,000. 

Sector focus: Apolitical stocks with solid fundamental may trend amid the ongoing uncertainties; banking, telecommunication, and utilities stocks may shine. Besides, export-oriented companies might be in favour following a strong US Dollar. Investors may focus on the going reporting season to uncover gems with growing earnings.

Stocks to watch: 

Building material: EFRAME, MASTEEL
Technology: ATECH, KGB, MPI, PENTA
Consumer: BJFOOD, PELIKAN, PWROOT
O&G: ARMADA, COASTAL, UZMA
Construction: NESTCON, WCT
Others: AFFIN, ECOMATE, LCTITAN, LITRAK 

Source: M+ Online

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