Chart : Gamuda daily chart as of Aug 22 2014 (source: ChartNexus)

Construction outfit Gamuda has seen it share price hits new high again to trade around RM 4.95 for last 2 days. After it broke its horizontal resistance line at RM 4.88, the counter seems ready to break another important hurdle of RM 5 round digit resistance. The recent announcement of land banking activity south of KL has augurs well with fellow analysts. The 1,530 acres land with a price tag of RM 12 psf is likely to be developed into a new township that will keeps the property division busy for years to come. For its construction division, the MMC-Gamuda KVMRT JV is set to receive a payout of over RM 4 billion for its role as project delivery partner for the ongoing Sg. Buloh - Kajang MRT project. The JV also will be front runner for the second MRT line (Sg. Buloh - Serdang - Putrajaya). In addition, Gamuda is also believe to be leading the pack for the 2 key components of Penang integrated transportation plan that cost over RM 5.5 billion. With all these excitement, I believe that the counter will break its RM 5 mark and continue to march forward for new high.