• Technical BUY with +20.2% potential return
• Last price: RM0.595
• Target price: RM0.675, RM0.715
• Support: RM0.55
• Stop-loss: RM0.545

BUY with a target price of RM0.715 and stop-loss at RM0.545. Based on the daily chart, share price is recovering gradually and moving above the 7- and 21-day EMA. On yesterday’s movement, PKS managed to penetrate the breakout level of RM0.585 and closed higher at RM0.595 with high trading volume. This is supported by the rising DMI and RSI indicators, which imply that positive momentum will strengthen in the near term. We expect the stock will continue to move towards our targets at RM0.675 and RM0.715 in the near term.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 26 Sept 2017