BURSAMASTER’S PICK – 23 to 27 MAY 2016

1-    HSL (6238)

        HSL sees record new contracts in 1Q16

          Hock Seng Lee Bhd (HSL) has procured a record amount of new contracts in the

          first quarter of 2016 (1Q16). The company in a statement said in 1Q16, the value

          of projects in hand for the group reached a record RM2.7 billion, with new  

          contracts secured in the period worth RM1.89 billion.

HSL is currently trading at its resistance of 1.75. If this level can be surpassed conclusively we probably can see it testing the next resistance of 2.05 and 2.14. Stop Loss (SL) is pegged at 1.62. Its recent low was 1.67 done on 18 May 2016. If this reversal is conclusive; there is a likelihood that it can retest its resistance as above. The recent low was probably the result of the sell down observed on most Sarawak counters after the state election.

2-    ANNJOO (6556)

ANNJOO made an impressive turnaround trading up from a low of 0.98 on 16 May 2016 to test its resistance of 1.10 by surpassing briefly to 1.11 before succumbing to profit taking closing on Friday at 1.07. I believe it will retry to break the 1.10 resistance again and surpassing conclusively to retest its next resistance of 1.29 on anticipation of better than expected results to be released tentatively 26 May 2016. SL is pegged at 0.97.

3-    CHEEWAH (9423)

Monitor CHEEWAH for breakout of its initial resistance of 1.44 with subsequent resistance quite far at 1.76. It has tried to break the 1.44 resistance on Friday but succumbed to profit taking to close at 1.35. It should try to break this resistance again this week.SL is pegged at 1.28.

4-    SGB (7165)

The recent downward movement in price has brought us to the technically important level of 0.585. Failure to find support at this level may accentuate the bearish move. The RSI indicator is giving a reading in the oversold region. This may indicate the price decline may be over-extended. The price and volume action at the 0.585 support level is to be monitored carefully. If a meaningful breakout of 0.605 level is conclusive; we could see a reversal of trend to the 0.685 and 0.76. It was observed that the 0.585 level was well supported .

5-    CIMB (1023)

The support and resistance level of CIMB are 4.28 and 4.47 respectively. If the 4.47 can be broken conclusively then the next resistance will be at 4.72;  The indicator analysis on RSI is not exhibiting any extreme condition. Monitor closely for breakout of this 4.47 level .

7-    SALUTE (083)

The IPO price of 0.80 should be a basis for consideration. But the high volume of trade on its 1^st day of trading last Thursday 19 May 2016 should invite heavy sellings this Monday and Tuesday. Good entry level should be between 0.75 & 0.80 with 1 to 3 month TP  of 1.18 on anticipated positive news flows.

8-    JHM (0127)

JHM has been trading above its upward sloping 20-Day Moving Average which is a good sign. Furthermore, the next resistance level is quite far at 0.675. Monitor for opportunities

9-    VS (6963)

The support and resistance level of VS are 1.2 and 1.27 respectively. Monitor for breakout of this 1.27 resistance. If broken conclusively; we could then see it breaching higher levels of 1.38 and 1.45. SL 1.18

10- TAANN (5012)

           Ta Ann records a four per cent increase in revenue

            Ta Ann Holdings Berhad (Ta Ann) recorded a four per cent increase in its

            revenue for the financial year ended Dec 31, 2015 at RM1.0483 billion from  the

            previous year.

            The recent sell down of Sarawak counter has made TAANN attractive. Can

            consider entry at current level with SL at 3.88. Resistances at 4.18 and 5.22. A

            good fundamental stocks to collect as your portfolio. Can also bring short-term

            gain

HAPPY TRADING & GOOD LUCK

BURSAMASTER

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