M+ Online Morning Market Buzz - 12 Apr 23

Dow Jones: 33,684.79 pts (+98.27pts, +0.29%)
⬆️ Resistance:  34500
⬇️ Support:  32700

FBM KLCI: 1,435.89 pts (+7.76pts, +0.54%)
⬆️ Resistance:  1470
⬇️ Support:  1390

HSI Index: 20,485.24 pts (+154.04pts, +0.76%)
⬆️ Resistance:  21200
⬇️ Support:  19700

Crude Palm Oil: RM3,882 (-RM6, -0.15%)
⬆️ Resistance:  4050
⬇️ Support:  3670

Brent Oil: $85.61 (+$1.43, +1.70%)
⬆️ Resistance:  87.40
⬇️ Support:  82.10

Gold: $2,003.62 (+$12.14, +0.61%)
⬆️ Resistance:  2080
⬇️ Support:  1950

M+ Online Technical Focus - 12 Apr 23
Cahya Mata Sarawak Bhd: Higher building material prices to spur growth

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.
• Phosphate plant is slated for commercial operations from April 2023, with full commercial operations targeted for end-2023.
• Cement price continues to trend higher; rising 1.1% MoM in March 2023 bodes well whereby cement segment contributed close to 20.0% of pre-tax profit in FY22.
• Technically, traders may anticipate for a potential breakout above RM1.18 to target the next resistances at RM1.25-1.34 with long term target at RM1.40.

Technical View

(i) CMSB (S: RM1.12, R: RM1.25-1.34, LT TP: RM1.40, CL: RM1.11)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI strengthened for the third straight session amid regional markets’ rallies on hopes of a less-hawkish tone by central banks following the Bank of Korea’s move to keep the interest rate unchanged. Whilst the sentiment on the local bourse appeared firmer on the back of prevailing bargain hunting activities, upside may be capped before the release of the US inflation data later tonight. Commodities wise, the Brent crude oil price hovered above USD85, while the CPO traded above RM3,850. Gold price increased above USD2,000
 
Sector focus: Trading momentum may remain solid in the energy sector given the resilient crude oil price. Meanwhile, the downtrend move on Nasdaq overnight may send a negative signal to the technology sector on our local bourse. Investors may look for defensive sectors such as consumer staples, utilities, and telecommunications.

Stocks to watch:  
Technology: AIMFLEX, EG
O&G: ARMADA, CARIMIN, UZMA
Automotive: BAUTO, MCEHLDG
Gold-related: POHKONG, TOMEI
Consumer: CIHLDG, PWF
Finance-related: PPJACK, RCECAP
Others: ECOWLD, OWG, TIMECOM, YENHER

Source: M+ Online
 

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