PPedana has a bullish breakout

Putrajaya Perdana Bhd ('PPedana') is involved in the construction and property development sector. It was formed in 1998 as a joint venture between Eastern & Oriental Bhd ('E&O') and Putrajaya Holdings Bhd. I have posted something on this stock in March last year (go here).

In August, it was announced that E&O has disposed of its entire 50.8%-stake in PPedana for RM2.90 per share to a group of investors form the Middle East (go here & here).

Yesterday, EPF has announced that it has acquired a 5.67%-stake in PPedana on January 18th. With this announcement, the share price of PPedana rallied up today to gain 38 sen (or, 10%) to close at RM4.24. This rally has caused the share price to break out of the ascending triangle pattern, with the breakout level at RM3.94-96. With this breakout, the stock could continue its prior uptrend & go higher.

Nevertheless, the current market condition may not be conducive for a sustained rally in the stock. In the event of correction, I believe PPedana could be a good Trading BUY at RM3.94-4.00.


Chart: PPedana's daily chart as at January 29 (courtesy of Quickcharts)