The month of May is expected to be highly volatile despite the extended holidays in the ending of the month due to various factors including Malaysia’s 14th General Election due on 9th May 2018 and the quarter one year on year GDP, along with Interest rate report due this month.
We have shortlisted few highly potential companies listed on the Malaysian stock exchange which can perform well in the coming days and helps our clients to utilize the expected increased volume in the market in coming days.
DRB-HICOM BERHAD [S] (1619)
DRB-HICOM Berhad is an investment holding company works under three segments of business which includes Property, Asset and Automotive, Services, and Construction. With a market capitalization of more than 4 billion MYR is amongst the most attractive automotive business-related companies in industrial production sector of Malaysian stock market.
DRB-HICOM has a very strong fundamental background along with the recent price movement which makes it a good pick in terms of technical analysis as well. On technical ground the price of the stock is in a strong long-term bullish trend which is still intact and with the recent price drop currently the price of the stock is at an oversold state and an investor can invest in DRB-HICOM near current price level of 2.17 with the stop loss of 1.90 and target of 2.50 and 2.70 respectively for medium-term investment objective.
KRONOLOGI ASIA BERHAD (0176)
Kronologi Asia Berhad is a Malaysia-based investment holding company. The Company is engaged in providing enterprise data management (EDM) solutions. The Company’s segments are EDM Infrastructure Technology, EDM Managed Services, Investment holding.
Year on year Kronologi Asia Bhd grew revenues 32.48% from 61.35m to 81.28m while net income improved 134.82% from 3.05m to 7.16m this makes the counter a must have stock in the portfolio and investors are advised to accumulate the counter and take every bearish movement above the level of 0.70 as a buying opportunity.
V.S. INDUSTRY BERHAD [S] (6963)
V.S. INDUSTRY is the leader in Electronics Manufacturing Services (EMS) provider in Southeast Asia with a market capitalization of 3 billion MYR is one of the most attractive stocks in the Industrial production space in Malaysian equity market.
On the technical ground, the last traded price of V.S. industry was 2.25 which a very attractive price point for investors. It had recently crossed its medium-term downtrend line. The breakout of the recent trend will be confirmed if the counter is able to cross the level of 2.30 levels in near term with can further push the price near to the level of 2.60.
However, a shock in the election results can put pressure on the stock market which can increase the downside risk in this counter. Investors are advised to trade cautiously and avoid keeping an open position near to the election result days.
GEORGE KENT (MALAYSIA) BERHAD [S] (3204)
GEORGE KENT BERHAD is an engineering company which primarily works in water infrastructure development works which is now increasing its exposure in the rail transportation sector as well as in the healthcare sector to diversify its business which is working well for the company. With a healthy order book, George Kent Berhad is an attractive investment venture in the Malaysian Construction sector.
On the technical ground, the stock had last traded at 3.95 levels after bouncing back from 3.70 levels which are near to the support zone. An investor can buy this counter after the breakout of 4.10 levels with supportive trading volume for a medium-term target of 4.40.
GHL SYSTEMS BERHAD [S] (0021)
GHL Systems Berhad is engaged in developing and selling in-house software programs and it is one of a leading payment service provider in the Asian region. The company has a wide reach in the Asian markets including Malaysia, Philippines, Thailand, and Australia.
On the technical ground, the company is currently trading near its support levels and showing signals of a potential bullish movement in near term. An investor can buy this counter at the current market price of 1.32 with a medium-term target of 1.45.
The downside risk is limited in this counter however it is advised to trade with proper stop loss levels to avoid sudden loss due to unfavorable movement.
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