On our exchange, there are four stocks that retailers consider as political stocks. due to the perceived link to the ruling party, UMNO. Fifteen or twenty years ago, these companies were owned by UMNO-controlled companies or persons with close ties with UMNO. Today, two of these companies belong to the Government while the other two are still linked to UMNO. UEMLand is controlled by Khazanah while MRCB is controlled by EPF. Retailers would not be deterred by such minor legal points and they would buy any one of these stocks for a good punt. As at yesterday, all four stocks are resting on their respective uptrend line. A drop of 10 sen or more would change their technical outlook from cautious to bearish.
Chart 1: UEMLand's weekly chart as at Sept 13, 2011 (Source: Quickcharts)
Chart 2: MRCB's weekly chart as at Sept 13, 2011 (Source: Quickcharts)
Chart 3: Media's weekly chart as at Sept 13, 2011 (Source: Quickcharts)
Chart 4: KUB's weekly chart as at Sept 13, 2011 (Source: Quickcharts)The collective technical outlook of these stocks will tell a tale of the sentiment of the Malaysian retail players. Are they about to throw in the towel?
Hi Alex,
ReplyDeletewould really appreciate it if you can make a TA on Ytlpower..holding for dividend play but in a market like this, cutting loss seems to be imminent..thank you...
Hi Ong
ReplyDeleteThe chart for YTLPower is a bit tricky. Depending on how you draw the long-term uptrend line or what you choose to ignore, the LT uptrend line support is either at RM2.00 or RM1.80. So, the stock could be above or below the LT uptrend line. YTLPower could also enjoy support from the horizontal line at RM1.80. The next support will be the strong horizontal line at RM1.60.
I have a few clients with this stock and the best advice that I can give is reduce the quantity by half and hold onto the rest. The scary thing about this stock is that the government changes its stand & ask them (the IPPs) to re-negotiate the PPA. IF or when that happens, the stock will drop sharply. However, this possibility is purely a conjecture at this stage.