M+ Online Morning Market Buzz - 9 Dec 22

Dow Jones: 33,781.48 pts (+183.56pts, +0.55%)
⬆️ Resistance:  35200
⬇️ Support:  32800

FBM KLCI: 1,465.93 pts (-0.95pts, -0.06%)
⬆️ Resistance:  1520
⬇️ Support:  1440

HSI Index: 19,450.23 pts (+635.41pts, +3.38%)
⬆️ Resistance:  20200
⬇️ Support:  18200

Crude Palm Oil: RM3,961 (+RM18, +0.46%)
⬆️ Resistance:  4250
⬇️ Support:  3790

Brent Oil: $76.15 (-$1.02, -1.32%)
⬆️ Resistance:  90.30
⬇️ Support:  74.30

Gold: $1,789.14 (+$2.87, +0.16%)
⬆️ Resistance:  1850
⬇️ Support:  1740

M+ Online Technical Focus - 9 Dec 22
Ramssol Group Bhd: Human Resource technology specialist

Trading Catalyst
• Engages as a human capital management (HCM) solution and technology specialist provider with regional presence across 5 countries.
• Leveraging onto the digitalisation efforts and upgrades of customers’ HCM systems and maintenance works.
• Operates in a healthy balance sheet in 3QFY22 with a net cash position of RM7.1m, translating to net cash per share of 2.9 sen (c.7.3% of share price).
• Technically, traders may anticipate for a potential breakout above RM0.415 to target the next resistances at RM0.445-0.48 with long term target at RM0.52.

Technical View

(i) RAMSSOL (S: RM0.36, R: RM0.445-0.48, LT TP: RM0.52, CL: RM0.355)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI was dragged down marginally by the selldown in Petronas-linked heavyweights; 5-day net foreign selling stood at year-to-date high of RM938.8m. The global stock markets are deploying a wait-and-see approach as investors are waiting for more details from the upcoming FOMC meeting, focusing on the US Fed’s interest rate decision next week. Nevertheless, we believe some bargain-hunting activities to emerge on the domestic front following the Covid-19 easing measures in China. Commodities wise, the Brent crude oil price traded above USD76, while the CPO price hovered above RM3,950.

Sector focus:  Following the rebound on Wall Street, the technology sector could see some buying momentum. Besides, investors may look at the building materials sector while waiting for the re-tabling of Budget 2023. For the China’s reopening theme, we like the tourism, aviation, airports and consumer. Meanwhile, the energy sector may stay in a negative biased tone amid declining crude oil price.

Stocks to watch: 

Consumer: FFB, GCB
Technology: AEMULUS, DUFU, INFOTEC, JHM
Financial: BIMB, MBSB
Plantation: SWKPLNT, TAANN
Medical-related: KAREX, UMC
Others: CMSB, MALAKOF, SIGN, TAFI, YEWLEE 

Source: M+ Online

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