Given the National Fiberisation and Connectivity Plan (NFCP) worth RM21.6bn will be maintained under the Perikatan Nasional administration, coupled with 6 new projects under following the announcement of 2020 Economic Stimulus Package as well as the inevitable transition from 4G-to-5G, we believe telco sector may see support in the near term. Hence, we believe OCK and BINACOM will be tagging with telcos to bid for contracts moving forward given their expertise in the telecommunication field and track record over the years.
OCK: After the breakout of RM0.45 level, we believe OCK is on an extended upward rebound and technical readings have turned more positive at this juncture. Hence, we think it may revisit resistance along RM0.50-0.535-0.56. Support is located around RM0.445-0.455, followed by a cut loss around RM0.44.
BINACOM: It has formed a flag formation breakout last Thursday above RM0.355 level, closing above the SMA200 level as well; suggesting buying interest has turned more positive. With the indicator turning positive, we expect further upside to be seen in the near term towards retesting the resistance around RM0.405-0.44-0.485. Support is anchored around RM0.335-0.345, and cut loss is set at RM0.325.
Source: Hong Leong Investment Bank Research - 21 Apr 2020
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Created by HLInvest | Jul 19, 2024