M+ Online Morning Market Buzz - 16 Dec 22 
 
Dow Jones: 33,202.22 pts (-764.13pts, -2.25%) 
⬆️ Resistance:  35500 
⬇️ Support:  32400 
 
FBM KLCI: 1,467.13 pts (-16.04pts, -1.08%) 
⬆️ Resistance:  1520 
⬇️ Support:  1440 
 
HSI Index: 19,368.59 pts (-304.86pts, -1.55%) 
⬆️ Resistance:  20400 
⬇️ Support:  18900 
 
Crude Palm Oil: RM3,946 (+RM52, +1.34%) 
⬆️ Resistance:  4130 
⬇️ Support:  3650 
 
Brent Oil: $81.21 (-$1.49, -1.80%) 
⬆️ Resistance:  84.90 
⬇️ Support:  73.70 
 
Gold: $1,776.85 (-$30.47, -1.69%) 
⬆️ Resistance:  1870 
⬇️ Support:  1740 
 

M+ Online Technical Trading Stocks - 16 Dec 22

Stock Name: OPTIMAX (0222)
Entry: Buy above RM0.785
Target: RM0.83 (5.7%), RM0.86 (9.6%)
Stop: RM0.765 (-2.5%)
Shariah: Yes
Technical: Flag-formation breakout

Stock Name: HHGROUP (0175)
Entry: Buy above RM0.47
Target: RM0.50 (6.4%), RM0.525 (11.7%)
Stop: RM0.45 (-4.3%)
Shariah: Yes
Technical: Monitor for breakout

Source: Bloomberg, M+ Online

Market update: The FBM KLCI tumbled more than 1% as the telco and banking heavyweights succumbed to selling activities yesterday, while the foreign funds have turned net seller for the session. Meanwhile, the ECB maintained its interest rate hike decision to 2% and warns of more increases to fight inflation going forward. With the rising recession fear amid the global interest rate hike environment, we believe the regional and local bourses are likely to trend in the negative tone at least over the near term. Commodities wise, the Brent oil price declined but maintained above the USD81 level, while the CPO price hovered slightly below RM3,950. Also, gold pulled back below the USD1800 psychological level. 
 
Sector focus: The negative sentiment may spillover towards stocks on the local front, specifically the technology sector. However, we believe the O&G stock could be decent to pick up in view of the firm Brent oil price. We also expect a pickup in defensive characteristic sectors, such as the REITs, consumer and utility sectors. 
 
Stocks to watch:  
Consumer: BJFOOD, FFB, INNATURE, KTC, MFLOUR 
Construction: HSSEB, NESTCON  
Chemical: HEXIND, HEXTAR 
Renewable energy: AMTEL, CYPARK, RENEUCO 
Technology: KRONO, PERTAMA, UCHITEC 
Others: AIRPORT, HHGROUP, MBMR, OPTIMAX, WASEONG 
 
Source: M+ Online

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