Kian Joo falls after Can-One files suit to stop bonus, rights issue

KUALA LUMPUR: Shares of KIAN JOO CAN FACTORY BHD [] (KJCF) fell at the start of trade on Monday, May 23 after CAN-ONE BHD [] filed court action to stop KJCF's proposed bonus and rights issue.

At 9.01am, KJCF fell seven sen to RM2.03 with 110,200 shares done.

The FBM KLCI rose 1.59 points to 1,542.62. Turnover was 15.20 million shares valued at RM8.09 million. There were 59 gainers, 48 losers and 91 stocks unchanged.

Can-One said last Friday it opposed KJCF's proposed one-for-two bonus issue and the proposed renounceable rights issue of 166.56 million five-year warrants 2011/2016 on the basis of one warrant for every four KJCF shares held after the proposed bonus.

Can-One claimed the proposals breached the rights of Can-One under the shares sales agreement dated March 13, 2009 and in breach of the Order of the Court of Appeal dated Aug 25, 2010 and the order of the Federal Court dated Feb 21, 2011.

Kian Joo down 8c in late trade, weakening technical outlook

KUALA LUMPUR: Shares of Kian Joo Can Factory (KJCF) fell eight sen to RM2.30 in late afternoon rade on Thursday, April 21 on weakening technical outlook for its share price.

At 4.21pm, it was down eight sen to RM2.30 with 5.05 million shares done.

The FBM KLCI lost 2.43 points to 1,528.59. Turnover was 1.21 billion shares value at RM1.24 billion. There were 370 gainers, 375losers and 322 stocks unchanged.

CIMB Equities Research had a Sell on KJCF at RM2.38, at which it is trading at price-to-book value of 1.2 times.

It said KJCF had violated its support channel on Wednesday. If prices failed to bounce back above this trend line, there is a high possibility that the RM2.56 high would be its near term peak.

'The odds now favour the bears,' it said, adding indicators were showing signs of exhaustion. 'Only a rise above RM2.56 would warrant us to review our call,' it said.

CIMB Research has Sell on Kian Joo

KUALA LUMPUR: CIMB Equities Research has a Sell on Kian Joo Can Factory (KJCF) at RM2.38, at which it is trading at price-to-book value of 1.2 times.

It said on Thursday, April 21 that Kian Joo violated its support channel on Wednesday. If prices failed to bounce back above this trend line, there is a high possibility that the RM2.56 high would be its near term peak.

'The odds now favour the bears. Another black candle should push prices lower towards the 38.2% FR level at RM2.20. The 30-day SMA (now at RM2.10) is also magnet for prices,' it said.

CIMB Research said indicators are showing signs of exhaustion. MACD histogram bars are losing some pace here while RSI has also fallen below the oversold territory.

'Only a rise above RM2.56 would warrant us to review our call,' it said.