M+ Online Morning Market Buzz - 4 Apr 23 
 
Dow Jones: 33,601.15 pts (+327.00pts, +0.98%) 
⬆️ Resistance:  34400 
⬇️ Support:  31700 
 
FBM KLCI: 1,433.39 pts (+10.80pts, +0.76%) 
⬆️ Resistance:  1470 
⬇️ Support:  1380 
 
HSI Index: 20,409.18 pts (+9.07pts, +0.04%) 
⬆️ Resistance:  21200 
⬇️ Support:  19200 
 
Crude Palm Oil: RM3,896 (+RM12, +0.31%) 
⬆️ Resistance:  4010 
⬇️ Support:  3500 
 
Brent Oil: $84.93 (+$5.16, +6.47%) 
⬆️ Resistance:  88.20 
⬇️ Support:  76.00 
 
Gold: $1,984.65 (+$15.37, +0.78%) 
⬆️ Resistance:  2040 
⬇️ Support:  1920 
 
M+ Online Technical Trading Stocks - 4 Apr 23 
 
Stock Name: COASTAL (5071) 
Entry: Buy above RM2.31 
Target: RM2.44 (5.6%), RM2.58 (11.7%) 
Stop: RM2.19 (-5.2%) 
Shariah: No 
Technical: Monitor for breakout 
 
Stock Name: TEXCYCL (0089) 
Entry: Buy above RM0.82 
Target: RM0.875 (6.7%), RM0.90 (9.8%) 
Stop: RM0.78 (-4.9%) 
Shariah: Yes 
Technical: Monitor for breakout 
 
Source: Bloomberg, M+ Online

Market update: The FBM KLCI rebounded as rallies on Wall Street coupled with China’s future investment in Malaysia boosted sentiment. Although sentiment appeared to improve on the global front, risk may not abate yet as rising crude oil price may again trigger fears over inflation in the US and Europe. Nevertheless, buying interest on the local bourse should be supported by climbing crude oil prices as well as a better economic outlook following the reopening of China borders. Commodities wise, the Brent crude oil price rallied, trading above USD84 per barrel mark, while the CPO price hovered above RM3,890.  
  
Sector focus: Buying interest in the energy sector may sustain over the near term with the crude oil price remaining firm above USD84. Besides, sectors in the spotlight may include construction, building material, and green energy in view of their brighter outlook following the Prime Minister’s visit to China. 
 
Stocks to watch:   
Technology: KRONO, PIE, UNISEM, VSTECS 
O&G: DANCO, DAYANG, PANTECH, STRAITS, T7GLOBAL 
Consumer: FIHB, MFLOUR, PADINI 
Others: BAUTO, MCEMENT, RCECAP, TEXCYCL, YENHER 
 
Source: M+ Online

2Q23 Market Chat: The “WOW” factor coming from China and OPEC+ 
 
• Following the banking crisis in the US and Europe, we believe the sentiment will turn better in 2Q23, underpinned by (i) reopening of China’s borders, (ii) higher crude oil prices, (iii) strong growth in tourists’ arrival and (iv) well supported demand in the technology sector due to rising adoption of AI applications.  
• However, we understand there are several concerns if (i) the Fed remains hawkish and the economy falls into recession after the BTFP has ended.  
• Under this setup, we favour a few sectors, namely the (i) O&G, (ii) Technology, (iii) Medical, (iv) Utilities, (v) Telco and (vi) Shipping, and (vii) Poultry. 
 
2Q23 Stock picks 
 
1.  DANCO (S: RM0.405-0.425, R: RM0.50-0.525, CL: RM0.395) 
2.  EFRAME (S: RM0.88-0.925, R: RM1.10-1.5, CL: RM0.86) 
3.  HARBOUR (S: RM1.04-1.10, R: RM1.35-1.45, CL: RM1.02) 
4.  INFOM (S: RM1.32-1.42, R: RM1.62-1.72, CL: RM1.00) 
5.  KPJ (S: RM1.03-1.07, R: RM1.21-1.26, CL: RM1.00) 
6.  LAYHONG (S: RM0.265-0.28, R: RM0.335-0.365, CL: RM0.25) 
7.  PANTECH (S: RM0.72-0.75, R: RM0.865-0.90, CL: RM0.695) 
8.  PENTA (S: RM4.38-4.58, R: RM5.25-5.50, CL: RM4.30) 
9.  RANHILL (S: RM0.425-0.45, R: RM0.55-0.58, CL: RM0.405) 
10.  T7GLOBAL (S: RM0.365-0.385, R: RM0.46-0.475, CL: RM0.345) 
11.  TIMECOM (S: RM5.06-5.25, R: RM5.80-6.00, CL: RM5.00) 
12.  UNISEM (S: RM2.76-2.97, R: RM3.18-3.30, CL: RM2.70) 
   
S: Support, R: Resistance, CL: Cut loss 
 
Source: Bloomberg, M+ Online

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