M+ Online Morning Market Buzz – 2 Feb 23

Dow Jones: 34,092.96 pts (+6.92pts, +0.02%)
⬆ Resistance:  34900
⬇ Support:  32700

FBM KLCI: 1,485.50 pts (-13.89pts, -0.93%)
⬆ Resistance:  1540
⬇ Support:  1470

HSI Index: 22,072.18 pts (+229.85pts, +1.05%)
⬆ Resistance:  23200
⬇ Support:  21600

Crude Palm Oil: RM3,815 (-RM117, -2.98%)
⬆ Resistance:  4080
⬇ Support:  3650

Brent Oil: $82.84 (-$2.62, -3.07%)
⬆ Resistance:  90.80
⬇ Support:  82.00

Gold: $1,950.14 (+$22.26, +1.15%)
⬆ Resistance:  1990
⬇ Support:  1880

M+ Online Technical Focus - 2 Feb 23
HSS Engineers Bhd: Supported by long term earnings visibility

Trading Catalyst
• One of the leading engineering consultancy groups in Malaysia, involved in major notable large-scale projects.
• Engaging in several projects such as MRT 3, East Coast Rail Line (ECRL), Bus Rapid Transit 3, Pan Borneo Sabah and data centre campus and its electric substation in Sedenak Tech Park, Johor.
• Outstanding orderbook at RM1.47bn and tenderbook of RM350.0m as at end 3Q22 will sustain earnings visibility until 2033.
• Technically, traders may anticipate for a potential breakout above RM0.475 to target the next resistances at RM0.495-RM0.52 with long term target at RM0.575.

Technical View

(i) HSSEB (S: RM0.445, R: RM0.495-0.52, LT TP: RM0.575, CL: RM0.44)

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

Source: Bloomberg, M+ Online

Market update: The FBM KLCI took a breather before heading into the Federal Territory Day holiday as investors stayed cautious prior to the US Fed’s FOMC meeting. Meanwhile, the quarter-point rate hike from the Fed is within the market’s expectation and it has reversed the negative mood on Wall Street to close in the positive zone; this might be suggesting that the market has priced in the interest rate impact and acknowledging that the inflationary pressure has been easing. Hence, we believe the positive sentiment on both Wall Street and the regional markets will spill over to the local bourse. Commodities wise, the Brent crude oil traded around USD82, while the CPO price fell near the RM3,800/MT level. Sector focus: The technology sector may gain momentum after a strong surge on Wall Street. Meanwhile, investors may take a breather on energy stocks given the pullback in Brent oil price and remain focused on sectors such as travel related, transportation, and consumer. Stocks to watch: Consumer: GCB, INNATURE, ORGABIO, OWG Property: EWEIN, MAHSING, SIMEPROP Technology: D&O, IQGROUP, JFTECH, RAMSSOL Building material: BIG, PMBTECH Construction: GAMUDA, HSSEB Others: ANCOMNY, DRBHCOM, KPJ, PPJACK, TNLOGIS, XL Source: M+ Online

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