Monday, June 28, 2010

Weariness seen in Gamuda share price rally

KUALA LUMPUR: HLG Research said since its Buy on weakness call at RM2.70 on May 26, Gamuda's share price has already rallied 20% in less than a month to RM3.24 on June 25.

The research house said on Monday, June 28 that it believes the strong performance was mainly due: (1) The MRT proposal; (2) A commendable 3QFY10 results; (3) A surprise 6 sen gross dividend; (4) More positive sector news flow and higher projects roll-out after the 10MP announcement; and (5) Improved risk appetite for CONSTRUCTION [] stocks.

'Indicators show some signs of weariness as momentum and trend indicators are flashing overbought signals whilst the MFI is approaching 100%.

'Our strategy here is to unload on strength, preferably near the RM3.50 zone. Immediate support levels are RM3.10 (61.8% FR from high of RM3.44 and low of RM2.56), RM3.00 (50% FR), RM2.90 (38.2% FR) and RM2.77 (23.6% FR),' it said.


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