· TOMYPAK (TB, TP: RM1.88) retrenched after hitting a recent high of RM1.88. A “Triangle” chart pattern has been formed on the daily technical chart (Figure 4), while share price has broken out from its resistance-turned-support level of RM1.61 (S1) with the support of high trading volume. MACD histogram is looking for a positive crossover of the Signal line, coupled with both RSI and Stochastics trending upwards, showing the strong buying momentum. As such, we are issuing a “Trading Buy” with a near-term TP of RM1.88 (R2). Should buying interests remain, the share price is likely to rally towards the objective measurement target price of RM2.00.

· CENBOND (NR). Chart-wise, CENBOND broke out from its 2-month downtrend line. A white “Marubozu” candlestick has appeared on the daily technical chart, indicating that the bulls have overtaken the bears in yesterday trading session (see Figure 5). Key momentum indicators (Stochastics and RSI) are heading north, supporting the bullish bias. Should the daily trading volume pick up, we reckon that the share price could rally and retests its recent high of RM1.58 (R2).

· SCGM (TB, TP: RM3.77). To recap, we revised SCGM target price upwards to RM3.77 on 18 Jun 2015. Technically, despite key indicators hovering in overbought territory, the share price is trending upwards as per our expectations (see Figure 6). With the positive sentiment – lower raw material prices and the strengthening of USD against MYR, we reckon that the share price could continue its bullish move and rally towards our TP of RM3.77.

· SLP (NR). SLP has been trading in an uptrend channel as well as above all the key SMAs over the past two months. Underlying outlook looks positive from here as all the SMAs are trending upwards. Indicator-wise, both Stochastic and RSI are relatively overbought. In tandem with the lower trading volume, we expect a near-term consolidation towards its channel support of RM1.32 (S2) before it resumes its uptrend.

Source: Kenanga Research - 24 Jun 2015