M+ Online Morning Market Buzz - 8 Feb 23 
 
Dow Jones: 34,156.69 pts (+256.67pts, +0.78%) 
⬆️ Resistance: 34800 
⬇️ Support: 33000 
 
FBM KLCI: 1,476.38 pts (-14.09pts, -0.95%) 
⬆️ Resistance: 1500 
⬇️ Support: 1446 
 
HSI: 21,298.70 pts (+76.54pts, +0.36%) 
⬆️ Resistance: 22100 
⬇️ Support: 20700 
 
Crude Palm Oil: RM3,929.00 (-RM10.00, -0.25%) 
⬆️ Resistance: 3940 
⬇️ Support: 3670 
 
Brent Oil: $83.69 (+$2.70, +3.33%) 
⬆️ Resistance: 87 
⬇️ Support: 78 
 
Gold: $1,873.10 (+$5.62, +0.30%) 
⬆️ Resistance: 1946 
⬇️ Support: 1839 
 
M+ Online Technical Focus - 8 Feb 23 
Sunway Construction Group Bhd: Underpinned by record high orderbook 
 
Trading Catalyst 
• Malaysia’s largest pure play construction company listed on Bursa Malaysia, capable of delivering integrated construction services works with over 40 years of experience. 
• Outstanding orderbook of RM11.7bn (as of end-4Q22) implies and orderbook-to-cover ratio of 5.1x against trailing-12-months revenue of RM2.28bn. 
• To leverage onto the upcoming re-tabling of Budget 2023 which we expect mega infrastructure projects to remain on the cards. 
• Technically, traders may anticipate for a potential breakout above RM1.70 to target the next resistances at RM1.80-1.87 with long term target at RM2.00. 
 
Technical View 
 
(i) SUNCON (S: RM1.62, R: RM1.80-1.87, LT TP: RM2.00, CL: RM1.61) 
 
S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss 
 
Source: Bloomberg, M+ Online

Market update: The FBM KLCI slipped deeper into the negative territory throughout the session amid renewed selling pressure. However, following yesterday’s broad-based selldown we believe the bargain hunting activities are likely to emerge, in view of the upbeat cue from Wall Street overnight after the Fed Chair Jerome Powell indicated that the inflation could be subsiding. Commodities wise, the Brent crude oil price surged above the USD83 per barrel level with the recovering demand from China’s reopening activities, while the CPO rebounded above RM3,900 as the sentiment turned more positive. Besides, we expect the upcoming reporting season and the re-tabling of the Budget 2023 will be on traders’ radar. 

Sector focus: The O&G sector is still attractive amid the elevated crude oil price. We may observe bargain hunting activities emerging after a sharp fall yesterday, especially within the technology sector; in line with the rebound on Wall Street. Meanwhile, the REIT and utilities sectors may bode well under the recovery theme.

Stocks to watch: 
Building material: AJIYA, EFRAME, PA, PMBTECH, PMETAL
Technology: CEKD, GHLSYS, KGB, PENTA, PERTAMA, UWC
Consumer: MFLOUR, SDS
Property: CHHB, EWEIN, MAHSING
Others: KEINHIN, MHB, PECCA, TMCLIFE

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.