KUALA LUMPUR (Nov 16): Hong Leong IB (HLIB) Research expects the FBM KLCI to stay choppy (resistances: 1,469-1,482-1,500; supports: 1,408-1.424-1.436) ahead of the long weekend holidays and 15th general election (GE15) polling, as market participants adopt a cautious “wait-and-see” attitude.
In a traders’ brief on Wednesday (Nov 16), HLIB said given GE15’s elevated outcome unpredictability exacerbated by fragmented alliances that led to multi-cornered fights, coupled with 40% jump in registered voters since GE14 to more than 21 million, stemming from Undi18’s lowering of the voting age to 18 from 21 and automatic voter registration (AVR).
“We like CTOS Digital Bhd (Buy-RM1.70 TP) for its leadership position, strong economic moat, and highly scalable business model.
“Meanwhile, the pick-up in economic activities is good for CTOS given stronger volume of credit and trade transactions,” it said.
HLIB said that technically, the stock should attract buyers on further weakness, with a decisive climb above the RM1.44 (200D MA) to aim for the RM1.50 (38.2% FR) and RM1.62 (61.8% FR) ahead, while downside is cushioned by RM1.32 (lower BB) and RM1.27 (Sept 30 low).