M+ Online Morning Market Buzz - 5 Dec 22 
 
Dow Jones: 34,429.88 pts (+34.87pts, +0.10%) 
⬆️ Resistance:  35300 
⬇️ Support:  33000 
 
FBM KLCI: 1,481.80 pts (-9.71pts, -0.65%) 
⬆️ Resistance:  1530 
⬇️ Support:  1440 
 
HSI Index: 18,675.35 pts (-61.09pts, -0.33%) 
⬆️ Resistance:  19700 
⬇️ Support:  16500 
 
Crude Palm Oil: RM3,952 (-RM126, -3.09%) 
⬆️ Resistance:  4390 
⬇️ Support:  3840 
 
Brent Oil: $85.57 (-$1.31, -1.51%) 
⬆️ Resistance:  91.20 
⬇️ Support:  79.00 
 
Gold: $1,797.63 (-$5.47, -0.30%) 
⬆️ Resistance:  1850 
⬇️ Support:  1710 
 
M+ Online Technical Focus - 5 Dec 22 
Alcom Group Bhd: Aluminium prices making headway 
 
Trading Catalyst 
• Regarded as the largest manufacturer of rolled aluminium products in Malaysia and a leading supplier in the Asia Pacific region with a strong global presence with business activities in property development and construction. 
• Aluminium prices bottoming out since early October 2022 and gradually is trending to near USD2,500/MT on the back of declining inventory level. 
• Property development segment is boosted by higher sales from its maiden project; EmHub that is well on track for completion in 1H23. 
• Technically, the recovery stance may lift price higher to target the next resistances at RM0.95-0.97 with long term target set at RM1.04. 
 
Technical View 
 
(i) ALCOM (S: RM0.88, R: RM0.95-0.97, LT TP: RM1.04, CL: RM0.875) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 
Economic Releases For The Week (5/12/2022-9/12/2022): 
 
5/12/2022 
JP - Japan's Jibun Bank Composite PMI, 8.30AM 
JP - Japan's Jibun Bank Services PMI, 8.30AM 
CN - China's Caixin Services PMI, 9.45AM 
CN - China's Caixin Composite PMI, 9.45AM 
EU - Eurozone's S&P Global Services PMI, 5.00PM 
EU - Eurozone's S&P Global Composite PMI, 5.00PM 
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 Retail Sales, 6.00PM 
US - United States' S&P Global Services PMI, 10.45PM 
US - United States' S&P Global Composite PMI, 10.45PM 
US - United States' ISM Non-Manufacturing PMI, 11.00PM 
US - United States' Factory Orders, 11.00PM 
 
7/12/2022 
EU - Eurozone's 3Q22 GDP Growth Rate (3rd Est), 6.00PM 
 
8/12/2022 
JP - Japan's 3Q22 GDP Growth Rate, 7.50AM 
 
9/12/2022 
CN - China's Inflation Rate, 9.30AM 
CN - China's Producer Price Index, 9.30AM 
MY - Malaysia's Retail Sales, 12.00PM 
MY - Malaysia's Industrial Production, 12.00PM 
US - United States' Producer Price Index, 9.30PM 
 
Source: Bloomberg, M+ Online

Market update: The FBM KLCI notched lower on Friday as stock rally ran out of steam with buying momentum turning to the broader market. The market sentiment was mixed on the global front as worries over inflation reignited following the release of US labour market report that showed strong data on wages. Meanwhile, the easing of Covid-19 restrictions in China may indicate a shift towards economic reopening. On the local front, the formation of the new Malaysia cabinet may improve investors’ confidence on political stability. Commodities wise, the Brent crude oil price traded above USD85, while the CPO price plunged towards RM3,950. 

Sector focus: We believe with the new setup of cabinet; the market may stabilise and trade on certain political linked stocks. Meanwhile, we expect the O&G sector to outperform the broader market as the sector’s earnings have been growing positively over the past few quarters. Also, we like the technology sector with the improving sentiment from Wall Street. 

Stocks to watch: 

Technology: CTOS, D&O, DSONIC, FPI, GTRONIC, INFOTEC, PENTA, SFPTECH 
Telco-related: OMESTI, THETA
Solar-related: CYPARK, SAMAIDEN, SLVEST
O&G: CARIMIN, DAYANG, DELEUM, DIALOG
Medical-related: CENGILD, DPHARMA, KPJ
Consumer: INNATURE, PWROOT
Construction-related: GFM, HSSEB, IJM, WCT
Furniture-related: EVERGRN, HOMERIZ, TAFI
Others: AMBANK, KEINHIN, RANHILL 

Source: M+ Online

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