KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
LCTH Corporation Berhad (LCTH) Close Position
Recall that we previously issued a buy call on LCTH (3-March 2016), after observing the share price staging a technical breakout to confirm a bullish ‘inverted head and shoulder’ chart pattern. However, the share price has failed to rally further but instead underwent a profit-taking phase. Both RSI and Stochastic have also rolled over, with the latter reversing strongly from its overbought zone to imply the heavy selling pressure. With the unappealing technical picture, we decided to close position on the stock for now but will re-look into it once its technical outlook turns compelling again.
MMC Corporation Berhad (MMCCORP) Not Rated
Yesterday, MMCCORP rose 6.0 sen (3.5%) to RM1.76 on trading volume, which hit a six-month high. Previously in Nov-2015, MMCCORP commenced a downtrend which saw its share price retreating by as much as 30% from a high of RM2.31 to last week’s low of RM1.61. Nevertheless, the MACD has ceased to make new lows over the past few months, and this reflects that selling pressure has depleted over this period. Furthermore, yesterday’s bullish move has caused the share price to break above its downwardsloping trend line to paint a more positive technical outlook. Should MMCCORP break above the RM1.78 (R1) (23.6% Fibonacci Resistance/ 50-day SMA) resistance, the next resistance level to look forward to is RM1.89 (R2). Immediate supports are located at RM1.69 (S1) and RM1.61 (S2).
Recall that we previously issued a buy call on LCTH (3-March 2016), after observing the share price staging a technical breakout to confirm a bullish ‘inverted head and shoulder’ chart pattern. However, the share price has failed to rally further but instead underwent a profit-taking phase. Both RSI and Stochastic have also rolled over, with the latter reversing strongly from its overbought zone to imply the heavy selling pressure. With the unappealing technical picture, we decided to close position on the stock for now but will re-look into it once its technical outlook turns compelling again.
MMC Corporation Berhad (MMCCORP) Not Rated
Yesterday, MMCCORP rose 6.0 sen (3.5%) to RM1.76 on trading volume, which hit a six-month high. Previously in Nov-2015, MMCCORP commenced a downtrend which saw its share price retreating by as much as 30% from a high of RM2.31 to last week’s low of RM1.61. Nevertheless, the MACD has ceased to make new lows over the past few months, and this reflects that selling pressure has depleted over this period. Furthermore, yesterday’s bullish move has caused the share price to break above its downwardsloping trend line to paint a more positive technical outlook. Should MMCCORP break above the RM1.78 (R1) (23.6% Fibonacci Resistance/ 50-day SMA) resistance, the next resistance level to look forward to is RM1.89 (R2). Immediate supports are located at RM1.69 (S1) and RM1.61 (S2).
Source: Kenanga Research, 08 March 2016
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