General Notes For Thursday [18/1/2024]:
KLCI closed red around the 1491 points region with an overall bearish market sentiment as we saw over 830 counters closing red along with it for the day. Daily trading volume remained around the 5 billion mark today.
Main stocks that showed strong buying momentum today would be the likes of MINETEC, MRCB, E&O, YTL, UEMS, and SIME. All of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.
Main theme today would still be the property segment in play, mostly larger cap stocks. Market was definitely fueled with stocks that hit limit down such as SCIB, MERSEC, RAPID, YNHPROP, and ARTRONIQ. While the others like LEFORM, MESTRON, APB, GTRONIC, and JSB all took severe hits too despite not hitting their limit down prices.
This rapid sell down with such huge volume will definitely spiral downwards even more, even triggering certain margin calls, leading to more selling activities. Although the share prices had been performing quite well earlier, the trading price is nowhere near their fair value.
$MERSEC (0285.MY)$ is quite interesting here among those that took a huge hit. Yes, it did hit its limit down price around the RM 0.45 regions, but towards closing, saw some pretty significant buying activities here.
Seems like that is some demand around the RM 0.42 - RM 0.45+ major support levels here and if able to sustain the buying support, it could rebound back towards the RM 0.50 - RM 0.55+ regions soon in the coming days.
Will be monitoring MERSEC closely here.
$E&O (3417.MY)$ although retraced back towards the RM 0.85+ support levels yesterday, was able to swiftly rebound back towards the RM 0.90 regions today with good volume and buying momentum despite the weak market sentiment.
For now as long as able to hold above its RM 0.88+ immediate support regions, could be trending back towards the RM 0.95 - RM 0.97+ major resistance levels soon in the coming weeks. Still looking pretty healthy here in terms of its uptrend.
Will be monitoring E&O closely here to see how this develops.
$EFRAME (0227.MY)$ seems to have formed a higher low region around the RM 0.86+ support levels already on the daily chart as it was able to rebound back towards the RM 0.89 regions today with good volume despite the weak market sentiment.
This came after the market sold it on good news yesterday. EFRAME after its new acquisition, will be reporting an additional RM 10 million in profit per year for at least 3 years. For 2023, EFRAME reported net profit of RM 13 Million.
I'm expecting the net profit to almost double in the coming year, and this should be the main driving force for its share prices.
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