Yesterday, TSH rose 21 sen or 6.9% to settle at RM3.26, amid investors’ expectation of higher CPO prices. Our in-house plantation analyst has an OUTPERFORM call on the stock, citing that TSH is set to benefit from higher CPO prices as it has the strongest FFB growth among the mid-cap planters. The technical picture suggests that TSH has now broken out from a congestion zone, triggering a buy signal. Momentum also seems to be gradually shifting from bearish to bullish, and we reckon that TSH is now poised for an upside movement from here. Traders looking to buy into this stock could target to take profit at RM3.57, while employing a strict stop-loss at RM3.09 (3 bids below the previous resistanceturned-support level @ RM3.12).

 

Source: Kenanga