KSL was down 8.0 sen (3.6%) yesterday to RM2.12. It has been slumping since its FY14 earnings came in below our in-house estimates last week. Since then, our analyst has trimmed sales estimates by 16% for both FY15-16E. Key indicators are leaning towards a bearish bias as the MACD has dropped below the Signal Line, while RSI and Stochastics are also heading south, well into oversold territory. KSL appears to be consolidating at current levels after the huge selldown last week. It also appears unlikely for the share price to hit our Target Price of RM2.48 in the short-run especially current market conditions are also not conducive. As such, we take this opportunity to Close Position on this stock as the share price is not trading within our expectations.

Source: Kenanga