M+ Online Morning Market Buzz - 4 Jan 23
Dow Jones: 33,136.37 pts (-10.88pts, -0.03%)
⬆️ Resistance: 34100
⬇️ Support: 32200
FBM KLCI: 1,473.99 pts (-21.50pts, -1.44%)
⬆️ Resistance: 1540
⬇️ Support: 1440
HSI Index: 20,145.29 pts (+363.88pts, +1.84%)
⬆️ Resistance: 20700
⬇️ Support: 19000
Crude Palm Oil: RM4,236 (-RM17, -0.40%)
⬆️ Resistance: 4370
⬇️ Support: 3930
Brent Oil: $82.10 (-$3.81, -4.43%)
⬆️ Resistance: 88.80
⬇️ Support: 79.70
Gold: $1,839.48 (+$15.46, +0.85%)
⬆️ Resistance: 1890
⬇️ Support: 1770
Market update: The FBM KLCI kicked off the first trading day in 2023 in the negative territory as market digested recent gains buoyed by year-end window dressing activities. We believe the pullback could be deemed as a healthy pullback and bargain hunting activities should pick up in undervalued stocks despite worries over the Covid-19 sub-variants may continue to weigh on investors’ sentiment. Still, we believe the reopening of China’s travel borders may provide decent growth for most of the global economies with another round of pent-up demand. Commodities wise, the Brent crude oil traded around USD82, while the CPO price hovered above RM4,200.
Sector focus: We remain positive stance on the oil & gas and plantation sectors as both the underlying commodity prices remain firm and should lift the sectors, respectively. Besides, tourism sector may see a turnaround with traveling activities picking up amid the reopening of China’s borders. Besides, the healthcare sector could see some trading interest on anxiety over the Covid-19 variants.
Stocks to watch:
Transportation and logistics: AAX, CAPITALA
Building material: AYS, CMSB, LBALUM
Tourism: GENM, OWG
Chemical: ANCOMNY, LCTITAN
Technology: SCICOM, SFPTECH
Others: JSB, JTIASA, MHB, UMW, YEWLEE
Source: M+ Online
M+ Online Technical Trading Stocks - 4 Jan 23
Stock Name: AYS (5021)
Entry: Buy above RM0.43
Target: RM0.455 (5.8%), RM0.47 (9.3%)
Stop: RM0.415 (-3.5%)
Shariah: Yes
Technical: Impending flag-formation breakout
Stock Name: MHB (5186)
Entry: Buy above RM0.615
Target: RM0.65 (5.7%), RM0.67 (8.9%)
Stop: RM0.595 (-3.3%)
Shariah: Yes
Technical: Flag-formation breakout
Source: Bloomberg, M+ Online
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