Comprehensive Analysis of Malaysian Stocks – November 2024
Report by CGS International | November 18, 2024
Wellcall Holdings: Extending Its Upward Channel
Wellcall Holdings has been on a bullish trajectory, evidenced by its recent gap up and the formation of a white Marubozu candle. This movement, supported by increased trading volume, suggests a positive short-term trend. The stock is likely to continue its upward channel from the RM1.41 low, having bounced off all the EMAs. The Moving Average Convergence Divergence (MACD) has confirmed a golden cross, and the Relative Strength Index (RSI) indicates strengthened buyer momentum. Aggressive traders are advised to consider a long position with a stop-loss set at RM1.51, aiming for resistances at RM1.68 and RM1.76.
Sunway REIT: A Resilient Performer
Sunway REIT’s 9MFY24 core net profit of RM251.7m fell slightly below expectations, accounting for 69-70% of the FY24F estimate and Bloomberg consensus. Nonetheless, stronger earnings are anticipated in 4QFY24F due to seasonally higher occupancy and improved rental per square foot. The REIT is backed by resilient earnings growth from FY24F to FY26F and a dividend yield of 5.7% in FY25F. The recommendation to “Maintain Add” is accompanied by a higher target price of RM2.04.
Mr D.I.Y. Group: Weathering a Temporary Blip
Mr D.I.Y. Group is experiencing a temporary setback in what is otherwise a strong growth outlook. The report maintains an “Add” recommendation with a target price adjusted to RM2.60. The company remains a robust player, poised to overcome short-term challenges.
Hup Seng Industries: Eyeing a Triangle Breakout
Hup Seng Industries is on the brink of a breakout from a consolidating triangle pattern, having reached a high of RM1.25 in mid-October. Last Friday’s positive trading volume led to a close above all EMAs, testing the triangle’s resistance. The MACD remains steady above the zero line, with the RSI pushing further, indicating rising buying momentum. Traders might consider entering at RM1.10-1.14, with a stop-loss at RM1.06, aiming for targets at RM1.20 and RM1.25.
Bumi Armada: Positive Outlook Amid Rerating Potential
Bumi Armada is expected to avoid a Mandatory General Offer (MGO), yet a fundamental rerating seems likely. The report sustains an “Add” recommendation with a target price of RM0.79, reflecting a positive outlook despite existing market challenges.
MISC Bhd: Overcoming Market Skepticism
MISC Bhd is urged to surmount existing market skepticism, with an “Add” recommendation maintained and a target price of RM8.97. The company is encouraged to address market concerns to unlock its potential value.
Actively Managed Portfolio Overview
The Actively Managed Portfolio, a medium-term investment product, integrates technical analysis in stock selection. The maximum trading period for recommended stocks is 1 to 6 months, aiming to let profits run and cut losses short. Wellcall Holdings has been newly added to the portfolio, which remains in a risk-off mode. The portfolio’s value stands at RM1,268,320.58, representing a 26.8% increase.
Market Overview
The local benchmark, FBMKLCI, experienced a decline, closing at 1,592.44, dropping 0.51% for the day. Sector-wise, consumer, technology, and plantation sectors were top losers. However, property, financial services, and industrial products sectors saw gains. The market breadth stayed negative as decliners outnumbered gainers.
Conclusion
The November 2024 Trendspotter report by CGS International provides an insightful analysis of various Malaysian stocks. Investors are advised to consider the details and recommendations provided to make informed investment decisions. The report underscores the importance of technical analysis in navigating the complexities of the stock market.
