Yesterday, KUB garnered heavy investors interest as seen in its all-time high trading volume after it was reported that the Group is on track to develop the inter-city rail transit system project in Iskandar, Malaysia. The share price has since broken out from its multi-month downtrend resistance level to settle above all its SMAs. Indicators are posting a bullish outlook, as depicted by the strong uptrend on both the momentum indicators (Stochastic and RSI). With the bullish prospect, we are placing a Trading Buy call on KUB with a view that the share price could trend upwards towards RM0.50 in the near-term. Stop-loss is placed at RM0.40 (S2). However, we do not discount that the share price could consolidate in the near-term to neutralize its overbought situation.

Source: Kenanga