Despite denying any knowledge of corporate development or any rumour, report or any other possible explanation to account for the unusual market activity by the Board of Directors of Measat, its share price did not drop back very much over the past 3 days. This morning, Measat resumed its strong rise again. It rose to a high of RM2.24 (gaining 50 sen) before retreating to close at RM2.17 at the end of the morning session. It tested the medium-term downtrend line resistance at RM2.20 but failed to cross it. After this downtrend line, Measat will face resistance at RM2.50 & RM3.00.
The rise of Measat is prompted by strong rumors that the stock could be the target of a reverse takeover by Maxis to enable the latter to gain a quick listing on Bursa. The reported reason of this exercise was for Maxis to raise funds to invest in its Indian telco venture. Who would you believe- the market or Measat's Board of Directors?
Chart: Measat's weekly chart as at 10/6/2009_12.30noon (Source: Quickcharts)
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