M+ Online Morning Market Buzz - 6 Dec 22

Dow Jones: 33,947.10 pts (-482.78pts, -1.40%)
⬆️ Resistance:  35300
⬇️ Support:  33000

FBM KLCI: 1,471.56 pts (-10.24pts, -0.69%)
⬆️ Resistance:  1530
⬇️ Support:  1440

HSI Index: 19,518.29 pts (+842.94pts, +4.51%)
⬆️ Resistance:  20000
⬇️ Support:  17200

Crude Palm Oil: RM3,971 (+RM4, +0.10%)
⬆️ Resistance:  4390
⬇️ Support:  3840

Brent Oil: $83.02 (-$2.55, -2.98%)
⬆️ Resistance:  91.20
⬇️ Support:  80.80

Gold: $1,768.68 (-$28.95, -1.61%)
⬆️ Resistance:  1850
⬇️ Support:  1710

M+ Online Technical Trading Stocks - 6 Dec 22

Stock Name: HEXTAR (5151)
Entry: Buy above RM2.33
Target: RM2.43 (4.3%), RM2.52 (8.2%)
Stop: RM2.24 (-3.9%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: SAMAIDEN (0223)
Entry: Buy above RM0.80
Target: RM0.845 (5.6%), RM0.875 (9.4%)
Stop: RM0.755 (-5.6%)
Shariah: Yes
Technical: Resistance breakout

Source: Bloomberg, M+ Online

Market update: The FBM KLCI declined further as investors deployed a “sell on news” strategy following the formation of new cabinet. With the sentiment turning negative on Wall Street, we expect more profit taking activities to emerge on the local front; especially the technology sector. Nevertheless, we believe the downside risk could be limited with investors eyeing for the 10 new Covid-19 easing measures to be announced by China on Wednesday. Back home, the market will be awaiting announcement from the Ministry of Agriculture and Food Security regarding the new mechanism to control egg prices. Commodities wise, the Brent crude oil price fell to USD83 per barrel level, while the CPO price hovered above RM3,950. 

Sector focus: The poultry segment will be on traders’ radar as the market awaits the new price control mechanism. Meanwhile, we expect the construction, solar-related and telco sectors to stay in focus ahead of the re-tabling of Budget 2023. Also, the market may look for window dressing trades.

Stocks to watch: 

Technology: BETA, CORAZA, UNISEM
Telco-related: OCK, OMESTI, THETA
Solar-related: PEKAT, SAMAIDEN, SLVEST
Building material: ANNJOO, ENGTEX
Furniture-related: JAYCORP, SYF
Transportation & Logistics: HARBOUR, WPRTS
Others: BSTEAD, IOIPG, PHARMA

Source: M+ Online

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