M+ Online Morning Market Buzz - 7 Dec 22 
 
Dow Jones: 33,596.34 pts (-350.76pts, -1.03%) 
⬆️ Resistance:  35300 
⬇️ Support:  32800 
 
FBM KLCI: 1,471.55 pts (-0.01pts, -0.00%) 
⬆️ Resistance:  1530 
⬇️ Support:  1440 
 
HSI Index: 19,441.18 pts (-77.11pts, -0.40%) 
⬆️ Resistance:  20000 
⬇️ Support:  17700 
 
Crude Palm Oil: RM4,070 (-RM24, -0.59%) 
⬆️ Resistance:  4390 
⬇️ Support:  3790 
 
Brent Oil: $79.35 (-$3.33, -4.03%) 
⬆️ Resistance:  91.20 
⬇️ Support:  77.20 
 
Gold: $1,771.04 (+$2.36, +0.13%) 
⬆️ Resistance:  1850 
⬇️ Support:  1720 
 
M+ Online Technical Focus - 7 Dec 22 
EP Manufacturing Bhd: Transforming into a sustainable automotive player 
 
Trading Catalyst 
• Manufactures a wide range of products such as engineering plastic components, metal stamping parts and/or modular assemblies for both domestic and international automotive OEMs. 
• Obtained a license from the Ministry of International Trade and Industry to assemble and manufacture two-wheeled electric vehicles at its upcoming facility in Glenmarie, Shah Alam that is expected to be completed in 3Q23. 
• Recently entered into a Memorandum of Agreement with California’s Saean Group Inc to mass produce 20,000 electric cars a year for the South-East Asian market. 
• Technically, traders may anticipate for a potential breakout above RM1.13 to target the next resistances at RM1.18-1.23 with long term target at RM1.35. 
 
Technical View 
 
(i) EPMB (S: RM1.05, R: RM1.18-1.23, LT TP: RM1.35, CL: RM1.04) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 
Source: Bloomberg, M+ Online

Market update: The FBM KLCI closed flat as the investors stayed cautious taking cue from the negative Wall Street performance. Moreover, we expect traders to remain on the sidelines ahead of the US CPI data next week, coupled with the FOMC meeting. Defensive stocks with solid track record in their earnings should be favourable under this challenging environment. Commodities wise, the Brent crude oil price tumbled towards USD79 per barrel, while the CPO price climbed above RM4,000 as Indonesia plans to boost its biofuel mandate, which could lower down the palm oil inventory level. 

Sector focus: Given the selldown on Wall Street, the technology sector may see selling activities returning, while the falling Brent oil price could limit the upside potential in the O&G sector. However, we like consumer stocks for its defensive characteristic and traders may look at selected stocks under the medical and building material sectors as the momentum is building up. 

Stocks to watch: 

Consumer: KEINHIN, MFLOUR, NTPM
Medical-related: DPHARMA, TMCLIFE, UMC
O&G: HENGYUAN, VELESTO
Construction & Building material: CMSB, EKOVEST
Property: MAHSING, TANCO
Financial: AMBANK, PPJACK
Transportation & Logistics: SWIFT, WPRTS
Others: ECOMATE, GREATEC, HEXIND, LITRAK 

Source: M+ Online

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