M+ Online Morning Market Buzz - 19 Dec 22

Dow Jones: 32,920.46 pts (-281.76pts, -0.85%)
⬆️ Resistance:  35500
⬇️ Support:  32100

FBM KLCI: 1,478.54 pts (+11.41pts, +0.78%)
⬆️ Resistance:  1520
⬇️ Support:  1440

HSI Index: 19,450.67 pts (+82.08pts, +0.42%)
⬆️ Resistance:  20300
⬇️ Support:  18800

Crude Palm Oil: RM3,918 (+RM24, +0.62%)
⬆️ Resistance:  4100
⬇️ Support:  3650

Brent Oil: $79.04 (+$0.35, +0.27%)
⬆️ Resistance:  84.90
⬇️ Support:  73.80

Gold: $1,793.08 (-$30.47, -1.70%)
⬆️ Resistance:  1870
⬇️ Support:  1740

Economic Releases For The Week (19/12/2022-23/12/2022):

20/12/2022
JP - Japan's Bank of Japan's Interest Rate Decision, 11.00AM

21/12/2022
US - United States' Existing Home Sales, 11.00PM

23/12/2022
UK - United Kingdom's 3Q22 GDP Growth Rate, 3.00PM
US - United States' 3Q22 GDP Growth Rate, 9.30PM

24/12/2022
JP - Japan's Inflation Rate, 7.30AM
MY - Malaysia's Inflation Rate, 12.00PM
US - United States' New Home Sales, 11.00PM
US - United States' Michigan Consumer Sentiment, 11.00PM

M+ Online Technical Focus - 19 Dec 22
Malaysian Bulk Carriers Bhd: Recovering rates in transport of dry bulk materials

Trading Catalyst
• Regarded as the largest drybulk shipowner in Malaysia that operates a fleet of vessels such as dry bulk carriers and product tankers.
• Limited fleet supply growth and on-going port congestion may keep freight rates elevated, moving forward.
• To ride onto the recovery in Baltic Exchange's dry bulk sea freight index that rose to the highest level since end-October 2022.
• Technically, traders may anticipate for a potential breakout above RM0.48 to target the next resistances at RM0.495-0.515 with long term target at RM0.56.

Technical View

(i) MAYBULK (S: RM0.45, R: RM0.495-0.515, LT TP: RM0.56, CL: RM0.445)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI ended the trading week of on a positive note as buying momentum in the plantation stocks led the key index higher amid the FTSE rebalancing activities. Meanwhile, the selling pressure on the US stock markets could have overdone after falling from 34,700 to 32,600 zone and may be due for a technical rebound, despite mounting fears over recession risks. On the local front, the reconvening of the Parliament session, coupled with the vote of confidence will be a formality process to build investors’ confidence, hence the downside risk could be limited with the ongoing window dressing activities. Commodities wise, the Brent crude oil hovered above USD79, while the CPO price traded above RM3,900. 

Sector focus: We still like the O&G sector due to its solid earnings growth recently. Also, we expect the construction and building material segments will be focused ahead of the re-tabling of the Budget 2023. We favour the banking stock with the ongoing window dressing activities.

Stocks to watch: 

Consumer: CYL, OWG
O&G: ARMADA, COASTAL, DELEUM, YINSON
Building material: BIG, LBALUM
Construction: GAMUDA, HSSEB
Chemical: ANCOMNY, HEXIND
Technology: FRONTKN, JFTECH, KGB, RAMSSOL, SNS, VIS, WONG
Others: ABMB, APB, HEKTAR, KPJ, MAYBULK, MGRC, SCGM

Source: M+ Online

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.