M+ Online Morning Market Buzz - 11 Jan 23 
 
Dow Jones: 33,704.10 pts (+186.45pts, +0.56%) 
⬆️ Resistance:  34700 
⬇️ Support:  32200 
 
FBM KLCI: 1,485.13 pts (-8.29pts, -0.56%) 
⬆️ Resistance:  1530 
⬇️ Support:  1450 
 
HSI Index: 21,331.46 pts (-56.88pts, -0.27%) 
⬆️ Resistance:  22000 
⬇️ Support:  19900 
 
Crude Palm Oil: RM3,955 (-RM29, -0.73%) 
⬆️ Resistance:  4350 
⬇️ Support:  3840 
 
Brent Oil: $80.10 (+$0.45, +0.56%) 
⬆️ Resistance:  84.40 
⬇️ Support:  76.10 
 
Gold: $1,877.03 (+$5.22, +0.28%) 
⬆️ Resistance:  1920 
⬇️ Support:  1790 
 
M+ Online Technical Focus - 11 Jan 23 
Guan Chong Bhd: Riding onto robust demand 
 
Trading Catalyst 
• Ranked as the fourth largest cocoa grinder in the world with total cocoa processing capacity of 337,000MT p.a. 
• New cocoa processing plant at Cote D’Ivoire with grinding capacity of 60,000MT per annum is expected to boost topline growth in FY23. 
• Growing population as well as increasing in disposable income is projected to increase consumption of chocolate products overtime. 
• Technically, traders may anticipate for a potential flag-formation breakout above the RM2.45, targeting the next resistances at RM2.52-2.61 with long term target at RM2.74. 
 
Technical View 
 
(i) GCB (S: RM2.35, R: RM2.52-2.61, LT TP: RM2.74, CL: RM2.34) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 
Source: Bloomberg, M+ Online

Market update: The FBM KLCI traded lower for the session as investors took profit prior to Jerome Powell’s speech and the US CPI data later this week. While the expectations of a tighter monetary policy may continue to weigh on market, we believe the local bourse could be on track for further recovery as the reopening of China’s border will dominate investors’ sentiment over the near term. Commodities wise, the Brent crude oil price climbed above USD80, driven by the expectation of strong demand growth following the China’s reopening. Meanwhile, the CPO price hovered above RM3,950. 

Sector focus: Investors may favour the technology sector following the advance in Nasdaq overnight. Following a pullback in transportation & logistics stocks yesterday, the sector may stage a rebound, supported by the China’s reopening theme. Besides, the energy sector may gain traction with the crude oil price crossing slightly above the USD80 per barrel mark.

Stocks to watch: 
O&G: ARMADA, DIALOG, PETRONM
Consumer: GCB, HHGROUP, INNATURE, PELIKAN
Building material: CMSB, KSSC, PMBTECH
Technology: FPGROUP, FPI, JFTECH, SCOMNET, VS
Power: MALAKOF, TENAGA
Others: DPHARMA, DRBHCOM, OWG, PPJACK, PTRANS, SENFONG, UMW

Market update: The FBM KLCI traded lower for the session as investors took profit prior to Jerome Powell’s speech and the US CPI data later this week. While the expectations of a tighter monetary policy may continue to weigh on market, we believe the local bourse could be on track for further recovery as the reopening of China’s border will dominate investors’ sentiment over the near term. Commodities wise, the Brent crude oil price climbed above USD80, driven by the expectation of strong demand growth following the China’s reopening. Meanwhile, the CPO price hovered above RM3,950.  
 
Sector focus: Investors may favour the technology sector following the advance in Nasdaq overnight. Following a pullback in transportation & logistics stocks yesterday, the sector may stage a rebound, supported by the China’s reopening theme. Besides, the energy sector may gain traction with the crude oil price crossing slightly above the USD80 per barrel mark. 
 
Stocks to watch:  
O&G: ARMADA, DIALOG, PETRONM 
Consumer: GCB, HHGROUP, INNATURE, PELIKAN 
Building material: CMSB, KSSC, PMBTECH 
Technology: FPGROUP, FPI, JFTECH, SCOMNET, VS 
Power: MALAKOF, TENAGA 
Others: DPHARMA, DRBHCOM, OWG, PPJACK, PTRANS, SENFONG, UMW 
 
Source: M+ Online

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