M+ Online Morning Market Buzz - 26 Apr 23

Dow Jones: 33,530.83 pts (-344.57pts, -1.02%)
⬆️ Resistance:  34600
⬇️ Support:  32900

FBM KLCI: 1,425.19 pts (+3.08pts, +0.22%)
⬆️ Resistance:  1470
⬇️ Support:  1400

HSI Index: 19,617.88 pts (-342.06pts, -1.71%)
⬆️ Resistance:  20900
⬇️ Support:  19300

Crude Palm Oil: RM3,635.00 (-RM70.00, -1.89%)
⬆️ Resistance:  3870
⬇️ Support:  3570

Brent Oil: $80.77 (-$1.96, -2.37%)
⬆️ Resistance:  86.5
⬇️ Support:  79.2

Gold: $1,997.39 (+$8.25, +0.41%)
⬆️ Resistance:  2050
⬇️ Support:  1950

M+ Online Technical Focus - 26 Apr 23
Redtone Digital Bhd: Integrated network service provider

Trading Catalyst
• Evolved from a voice provider to an entity that offers extensive range of services such as telecommunication services, managed telecommunication network services and industrial digital services.
• Remains committed to rollout on the remaining 250 towers under the JENDELA project (Jalinan Digital Negara).
• Transfer of listing status from the ACE Market to the Main Market may draw greater interests from institutional players.
• Technically, traders may anticipate for a potential breakout above RM0.525 to target the next resistances at RM0.55-0.58 with long term target set at RM0.625.

Technical View

(i) REDTONE (S: RM0.50, R: RM0.55-0.58, LT TP: RM0.625, CL: RM0.495)

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

Market update: The FBM KLCI bounced slightly higher after the long weekend break on the back of buying momentum in selected plantation and consumer heavyweights. However, Wall Street saw a deep decline triggered by revived banking fears and cautious tone amid technology earnings week. Thus, we believe the selling pressure may spillover to the regional and the local bourse. Commodities wise, the crude oil price tumbled towards USD80, while the CPO price hovered above RM3,600; gold price remained below USD2,000.

Sector focus: Given the cautious global market undertone, investors may lean away from the technology counters especially after Nasdaq fell under the psychological 12,000 level. Sectors such as utilities and telecommunication may gain traction with investors shifting their focus to defensive stocks. Meanwhile, health care stocks may be on traders’ radar for shorter term trades following the detection of Arcturus cases in Malaysia.

Stocks to watch:
Consumer Products: NTPM, PWROOT, MSM
Telecommunication & Media:  STAR, REDTONE, TIMECOM
Technology:  LGMS, RAMSSOL, VSTECS
Gaming-related:  GENTING, RGB
Others: CAPITALA, PPJACK, PGF, KPJ, CGB, YTL, ARTRONIQ

Source: M+ Online

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