KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
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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