IJMLand & MRCB's proposed merger aborted

Last week we saw the sudden selldown for IJMland & IJM. Subsequently these stocks & MRCB were suspended and a short announcement was made that IJMland & MRCB's proposed merger was aborted as the parties were unable to come to a definitive agreement. Like many analysts, I do not believe this development would be medium or long-term negative to any of these companies. However, the share prices of all these companies would see some selling pressure over the next few days. If the critical supports are not violated, this could be a buying opportunity.

1. IJMland

The strong supports are the horizontal lines at RM2.65 (tested last Friday) & RM2.45. It is critical that IJMland must not break below the 3rd fan trendline support at RM2.55. A break of this trendline could result in a reversal of the prior uptrend.


Chart 1: IJMland's weekly cahrt as at Dec 30, 2010 (Source: Quickcharts)

2. MRCB

It has a strong support at the horizontal line cum uptrend line support at RM1.80.


Chart 2: MRCB's weekly cahrt as at Dec 30, 2010 (Source: Quickcharts)

3. IJM

Its strong strong is at the horizontal line RM5.70 & the uptrend line support at RM5.40.


Chart 3: IJM's weekly cahrt as at Dec 30, 2010 (Source: Quickcharts)

I foresee the trading of these 3 stocks to be very volatile today & if you are interested to get into these stocks for whatever purpose, do exercise your discretion.