M+ Online Morning Market Buzz - 25Jan23

Dow Jones: 33,733.96 pts (+104.40pts, +0.31%)
⬆️ Resistance:  34700
⬇️ Support:  32300

FBM KLCI: 1,500.33 pts (+4.11pts, +0.27%)
⬆️ Resistance:  1540
⬇️ Support:  1470

HSI Index: 22,044.65 pts (+393.67pts, +1.82%)
⬆️ Resistance:  22500
⬇️ Support:  21000

Crude Palm Oil: RM3,892 (+RM3, +0.08%)
⬆️ Resistance:  4030
⬇️ Support:  3730

Brent Oil: $86.35 (-$1.84, -2.09%)
⬆️ Resistance:  90.90
⬇️ Support:  82.10

Gold: $1,937.36 (+$6.32, +0.33%)
⬆️ Resistance:  1990
⬇️ Support:  1860

M+ Online Technical Focus - 25Jan23
Carimin Petroleum Bhd: Tagging onto higher CAPEX spending from PETRONAS

Trading Catalyst
• Established since 1989 that specialised in provision of technical and engineering support services in the oil and gas industry in Malaysia.
• To be kept busy several projects such as the construction of about 10km of lateral pipeline and metering station and extension from Petronas Carigali Sdn Bhd for the provision of offshore maintenance, construction and modification (MCM) services.
• Leverage onto the higher CAPEX spending from PETRONAS activity outlook 2023-2025 report.
• Technically, traders may anticipate for a potential short-term consolidation breakout above RM0.63 to target the next resistances at RM0.65-0.685 with long term target set at RM0.745.

Technical View

(i) CARIMIN (S: RM0.59, R: RM0.65-0.685, LT TP: RM0.745, CL: RM0.585)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI took another step higher to close marginally above the 1,500 level. This week, we reckon that the trading activities will be muted amid the holiday-shortened trading week as most investors could still be enjoying the break. Nevertheless, bouts of upsides are to be expected with traders taking further positions in riskier assets following the Bank Negara’s unexpected move to maintain the OPR. Commodities wise, the Brent crude oil slipped to close around USD86/bbl, while the CPO price is approaching RM3,900/MT. 

Sector focus: The O&G and plantation sectors may garner trading interests with CPO price recording three consecutive sessions of recovery, while the Brent oil is firmly higher due the higher demand from the reopening theme. Also, construction and building materials related stocks could turn more positive under the improving labour conditions. Meanwhile, with the freight rates normalising and the weaker Baltic Dry Index, the shipping-related stocks may turn less attractive.

Stocks to watch: 
O&G: CARIMIN, DAYANG, PENERGY, YINSON
Consumer: KTC, MFLOUR, QL
Technology: CTOS, D&O, GENETEC, MTAG 
Automotive: BAUTO, PECCA
Building Material: AJIYA, LBALUM
Others: GAMUDA, KOTRA, OPCOM, SAMAIDEN, SMISCOR

Source: M+ Online

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