M+ Online Morning Market Buzz - 21 Dec 22

Dow Jones: 32,849.74 pts (+92.20pts, +0.28%)
⬆️ Resistance:  35100
⬇️ Support:  32000

FBM KLCI: 1,467.32 pts (-9.77pts, -0.66%)
⬆️ Resistance:  1520
⬇️ Support:  1440

HSI Index: 19,094.80 pts (-258.01pts, -1.33%)
⬆️ Resistance:  20300
⬇️ Support:  18600

Crude Palm Oil: RM3,916 (+RM47, +1.21%)
⬆️ Resistance:  4100
⬇️ Support:  3780

Brent Oil: $79.99 (+$0.19, +0.24%)
⬆️ Resistance:  84.90
⬇️ Support:  76.80

Gold: $1,817.94 (+$30.32, +1.70%)
⬆️ Resistance:  1860
⬇️ Support:  1740

M+ Online Technical Focus - 21 Dec 22
Padini Holdings Bhd: Retail sales remained upbeat

Trading Catalyst
• Operates more than 100 retail stores, covering 1.5m sqf of gross floor area under several household brands such as Vincci, Vincci+, Vincci Accessories, Tizio, Padini Authentics, PDI, Padini, Seed, Miki and P&Co.
• Continues to monitor the overseas markets for opportunities to increase their market presence in Asia, especially ASEAN countries.
• Retail sales remain upbeat, rising 26.0% YoY in October 2022, suggesting that consumer spending remains solid.
• Technically, traders may anticipate for a potential flag-formation breakout above the RM3.36 level to target further upside towards the next resistances at RM3.45-3.54 with long term target at RM3.79.

Technical View

(i) PADINI (S: RM3.16, R: RM3.45-3.54, LT TP: RM3.79, CL: RM3.15)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI was in line with the regional markets’ slump after Bank of Japan widened the allowable band for long-term yields to 50 basis points from 25 basis points previously. Nevertheless, we believe the key index is poised for a rebound amid reducing selldown from foreign investors, as well as the rebound move on Wall Street overnight. Also, window dressing activities may kick in towards year end. Commodities wise, the Brent crude oil price traded below USD80, while the CPO price retreated below RM3,950 as drop in exports from Malaysia stoked concern about weaker demand. 

Sector focus: The construction and building material sectors may gain traction as the Transport Ministry agreed to review five development projects with a total contract value of RM650.0m. Meanwhile, we favour consumer, O&G as well as the technology sector for the session – the latter could rebound in view of slightly positive mood on Wall Street.

Stocks to watch: 
Consumer: MASTER, OWG, SENHENG
Medical-related: DPHARMA, OPTIMAX
Technology: AEMULUS, CTOS, EG, REDTONE, SKPRES, UCHITEC
Others: AIRPORT, ARMADA, DRBHCOM, EWINT, LBALUM, RESINTC, SCGM, SMI

Source: M+ Online

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