• Technical BUY on breakout with +20.8% potential return
• Last price: RM1.41
• Target price: RM1.64, RM1.74
• Support: RM1.31
• Stop-loss: RM1.29

BUY on breakout with a target price of RM1.74 and stop-loss at RM1.29. Based on the daily chart, STB formed a bullish Marubozu candlestick and has been climbing higher gradually after establishing support at the RM1.31 level. We expect the stock to continue moving up if it penetrates the breakout level of RM1.44. Positive readings in both the DMI and MACD should translate into stronger momentum for share price. We peg our targets at RM1.64 and RM1.74 in the near term.

Expected Timeframe: 2 weeks to 2 months.

Source: UOB Kay Hian Research - 30 Jun 2017