M+ Online Morning Market Buzz - 20 Jan 23 
 
Dow Jones: 33,044.56 pts (-252.40pts, -0.76%) 
⬆️ Resistance:  35100 
⬇️ Support:  32400 
 
FBM KLCI: 1,496.22 pts (+0.72pts, +0.05%) 
⬆️ Resistance:  1540 
⬇️ Support:  1460 
 
HSI Index: 21,650.98 pts (-27.02pts, -0.12%) 
⬆️ Resistance:  22400 
⬇️ Support:  21000 
 
Crude Palm Oil: RM3,892 (+RM3, +0.08%) 
⬆️ Resistance:  4010 
⬇️ Support:  3710 
 
Brent Oil: $86.16 (+$1.18, +1.39%) 
⬆️ Resistance:  89.70 
⬇️ Support:  81.90 
 
Gold: $1,932.24 (+$28.13, +1.48%) 
⬆️ Resistance:  1980 
⬇️ Support:  1860 
 
M+ Online Technical Focus - 20 Jan 23 
Cahya Mata Sarawak Bhd: Leveraging onto Sarawak economic developments 
 
Trading Catalyst 
• Regarded as a mini-conglomerate exposure across 7 business segments plus strategic investment through 18.9% stake in Kenanga Investment Bank Bhd and 20.1% stake in KKB Engineering Bhd. 
• Focusing onto ramping up the production of phosphate at Samalaju Industrial Park. 
• To leverage onto the economic developments at Sarawak 2023 following the approval of state budget amounting to RM10.80bn in December 2022. 
• Technically, traders may anticipate for a potential flag-formation breakout above RM1.17 to target the next resistances at RM1.24-1.27 with long term target at RM1.35. 
 
Technical View 
 
(i) CMSB (S: RM1.1, R: RM1.24-1.27, LT TP: RM1.35, CL: RM1.09) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 
Source: Bloomberg, M+ Online

Market update: The FBM KLCI eked out marginal gains following the decision by Bank Negara Malaysia to maintain the overnight policy rate (OPR) at 2.75%. Nevertheless, we expect the sideways trend on the local bourse may turn into a negative biased environment prior to the Lunar New Year holiday after Wall Street extended its slide amid increasing concerns on softer economic activities going forward and the expectation of the Fed’s tone to remain hawkish. Commodities wise, the Brent crude oil traded above USD86, while the CPO price stayed above RM3,850. 

Sector focus: The Bank Negara’s decision to pause the OPR hike may trigger further profit taking activities on the banking sector. Besides, selected technology stocks may tick lower following the decline on Wall Street. On the other hand, investors may favour the energy sector amid firmer crude oil price, while the consumer, tourism, aviation and REIT could be taken as a proxy towards the recovery theme following reopening of China’s borders.

Stocks to watch: 
O&G: COASTAL, DELEUM, HIBISCS, MHB
Consumer: BJFOOD, CCK, KTC
Pharmaceutical: KOTRA, YSPSAH
Technology: CORAZA, GENETEC, GREATEC
Others: AJIYA, BJLAND, CAPITALA, OWG, PECCA 

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.