Stock Alert- KPJ breaks its resistance while JLand may test its soon

KPJ Healthcare ("KPJ"), the largest private medical services provider in Malaysia, has seen its share price enjoying a strong run-up this morning. The share jumped 19 sen to close at RM1.85 at the close of the morning session. Volume traded was very impressive at 18,515 lots. KPJ’s last 4 quarterly earning totaled 16.9 sen per share. At the closing price of RM1.85, the stock is trading at a PE of 10.9 times.

What is interesting is the stock has just broken above its long-term resistance of RM1.83 (see Chart 1). There are 2 other minor resistances at RM1.91 and RM1.96 before it may test the psychological level of RM2.00. I would recommend a trading buy at the current level with a stop loss of RM1.83.

















Chart 1: KPJ's monthly chart as at July 12

Another counter whose share price has enjoyed a strong price run-up is Johor Land ("JLand"). Like KPJ, JLand is also a subsidiary of Johor Corporation. JLand is a property development company as well as being involved in metal door frame manufacturing; sale of ready-mix concrete; and trading in building material. Jland’s last 4 quarterly earning totaled 9.5 sen per share. At this morning session's closing price of RM1.11, the stock is trading at a PE of 11.7 times.

The stock, which closed at RM0.815 on July 7 (last Friday), has gained 23 sen in the past 2 days (see Chart 2). This morning it gained another 7 sen to close at RM1.11 at the close of the morning session. At this level, the stock is poised to test its long-term horizontal resistance of RM1.19 very soon. If it can successfully break above that mark, I would recommend a trading buy for JLand with a stop loss of RM1.19.

















Chart 2: Jland's monthly chart as at July 12