Wednesday, March 13, 2019
SAPNRG: A Rising Tide Lifts All Boats
The developing play for Oil & Gas sector soon lifts up even a stranded aircraft carrier, SAPNRG. This stock, which had a massive rights issue of RM4 billion in December last year, which was under-subscribed (here). It has an outstanding shares issued of 15.979 billion units, and yet today the sign is that the stock may join in the O&G rally.
SAPNRG just broke above its recent high of RM0.335. This will be its immediate support while its immediate resistance will be RM0.40. For the less technically inclined, you just need to know that the rights issue was done at RM0.30 apiece. It is very likely that this rights issue price will provide a very strong support, thus minimizing your downside.
Based on the upside breakout of the immediate resistance, SAPNRG is a trading BUY. Good luck!
Chart: SAPNRG's daily chart as at Mar 13, 2019 (Source: Malaysiastock.biz)