We previously issued a Trading Buy call on HSL on the back of: (i) high volume technical breakout from its multi-month resistance and (ii) HSL being one of the beneficiaries of the 11th Malaysian Plan. Despite that, the share price has failed to perform within our expectation and underwent a sell-down yesterday due to the growing domestic uncertainty. Key indicators like Stochastic and RSI have also collapsed heavily to indicate a bearish outlook on the stock. As a result, the share price has broken below our stop-loss level of RM1.89 to settle at RM1.85, leading us to stop-out our position on this counter.

Source: Kenanga Research - 26 May 2015