Poh Kong Holdings Berhad

• POHKONG’s is back in the radar after it pushed out from the pennant pattern with a long white candle yesterday. Higher trading volume also sent the stock further away from all the EMAs, suggesting the bullish momentum is picking up. In view of the rising EMAs supported by the positive reading in RSI, a positive outlook is expected in the near term.

• We expect the rising momentum to steer the stock higher and test the next resistance of RM1.17 (R1) and RM1.27 (R2) in the near term.

• On the downside, stop-loss is set at RM0.99, below 6 May’s low.

• Fundamentally, POHKONG stands to gain from the recent surge in global gold prices. Additionally, the introduction of the EPF Account 3 (Akaun Fleksibel) and a 13% pay hike for public servants are expected to boost disposable income. Consequently, the rise in disposable income is likely to enhance consumers' spending power, potentially boosting POHKONG’s retail sales.

Source: Rakuten Research - 17 May 2024

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