Naked Chart Trading: SSB8 27 May 2024

Another potential beneficial of Malaysia AI development - data centres related theme,

SSB8 plans to acquire a 51% equity interest in SJEE Engineering Sdn Bhd (SJEE) for RM22.95 million in cash. The company aims to broaden its construction capabilities, reduce subcontractor reliance, and expand geographically through this acquisition.

SJEE specialises in designing, installing, and commissioning electrical works, with a strong track record spanning over 30 years.Through this acquisition, SSBB aims to enhance its current suite of capabilities by incorporating electrical works, a sector it currently outsources to subcontractors.

SJEE's ongoing and completed projects include a wide range of electrical works for data centers, high-rise buildings, commercial complexes, industrial facilities, and healthcare institutions across Malaysia.

Long term chart wise, the trend is indeed in a major downtrend but with short term bullish outlook. While the bull trend just started Mar this year, the share prices had jumped more than 60% in May 2024 and nearly 5 times from its low on year 2020.

However, the trend remains in long term sideway, with potential to test sideway high at RM0.710, RM0.940 and RM1.20. Close above RM0.720 to trigger more upside. Support levels wise, close below RM0.660 likely to trigger a bearish reversal, with the next support at RM0.540 and RM0.440.

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