M+ Online Morning Market Buzz - 2 Dec 22 
 
Dow Jones: 34,395.01 pts (-194.76pts, -0.56%) 
⬆️ Resistance:  35300 
⬇️ Support:  33000 
 
FBM KLCI: 1,491.51 pts (+2.71pts, +0.18%) 
⬆️ Resistance:  1540 
⬇️ Support:  1440 
 
HSI Index: 18,736.44 pts (+139.21pts, +0.75%) 
⬆️ Resistance:  19700 
⬇️ Support:  16500 
 
Crude Palm Oil: RM4,085 (+RM7, +0.17%) 
⬆️ Resistance:  4390 
⬇️ Support:  3940 
 
Brent Oil: $86.88 (+$1.45, +1.70%) 
⬆️ Resistance:  91.20 
⬇️ Support:  79.00 
 
Gold: $1,803.10 (+$34.58, +1.96%) 
⬆️ Resistance:  1850 
⬇️ Support:  1710 
 
Market update: The FBM KLCI added another day of gains following the shift of tone from the Fed, turning less hawkish on its interest rate direction going forward. However, Wall Street has pulled back mildly yesterday, ahead of the jobs data that is widely watched by traders and may give a hint to the next course of action by the Fed. As the market has turned cautious in the US stock markets, we expect Bursa exchange to reciprocate and trading momentum may decline throughout the session. Nevertheless, we opine that the downside risk could be limited with the uplifting of Covid-19 restrictions in selected region in China. Commodities wise, the Brent oil price traded above USD87, while the CPO price hovered around RM4,100.  
 
Sector focus: Given the pullback in momentum on Wall Street, we expect the technology sector to take a mild breather. Still, we like the O&G segment for its decent earnings growth observed during the recent reporting season. Besides, we like the tourism and consumer sectors due to the ease of restrictions in China. 
 
Stocks to watch:  
 
Technology: CNERGEN, CORAZA, FPI, INARI, JFTECH, KGB, LGMS, MI, PIE, QES, SFPTECH, UNISEM 
Solar-related: CYPARK, SAMAIDEN, SLVEST 
O&G: CARIMIN, PENERGY 
Medical-related: DPHARMA, OPTIMAX 
Others: BURSA, FLBHD, GCB, IJM, YTL 
 
Source: M+ Online

M+ Online Technical Focus - 2 Dec 22
Tomei Consolidated Bhd: Prospects shining brighter

Trading Catalyst
• Founded in 1968 and has 58 retail outlets (as at end-October 2022); all located in major shopping malls in Malaysia.
• Expect demand for jewelries to stay firm, following the influx of wedding activities that was resulted from the backlog in recent years.
• After 7 consecutive months of decline, gold prices have delivered a sturdy recovery, surging 8.3% MoM in November 2022 and is approaching USD1,800/oz.
• Technically, traders may anticipate for a potential breakout above RM0.96 to target the next resistances at RM1.01-1.05 with long term target set at RM1.11.

Technical View

(i) TOMEI (S: RM0.93, R: RM1.01-1.05, LT TP: RM1.11, CL: RM0.925)

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

Source: Bloomberg, M+ Online

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