NSTP is testing its downtrend line at RM2.00

NSTP has been having a bad time for the past 2 years. Its main newspaper, The New Straits Times has fared poorly against its closest rival, The Star as reflected by its declining readership. Its financial performance is no better & the company had undertaken a VSS in QE 31/3/06. Last quarter i.e. QE30/6/06 shows NSTP reporting a net profit of RM5.1 mil on a turnover of RM132.5 mil. See the table below.



The share price also reflects NSTP's fortune. From a high of RM5.10 in Feb 2004, the share price has dropped to a low of RM1.63 in Jun 2006. Since then, the share price has been bottoming out with its rise capped at RM1.84. A recent attempt to break above this level went as high as RM1.91 on Nov 8 before succumbing to selling pressure. This morning, NSTP has again surpassed the RM1.84 level & also breaking above its medium-term downtrend line at RM2.00 level. At the close of the morning session, NSTP was trading at RM2.03. See the daily & weekly charts below.


Chart 1: NSTP's weekly chart as at Nov 21


Chart 2: NSTP's daily chart as at Nov 21

If NSTP can hold above the RM2.00 level, there is a good chance that the share can go higher. An entry at RM2.00 would be relatively safe.