· SCGM (Take Profit @ RM3.70). To recap, we issued a “Trading Buy” call on SCGM on 5 Mar 2015. Yesterday, the share price surged 30.0 sen to close at an all-time high of RM3.70 (our TP objective). Post the market close, SCGM announced 1-for-2 bonus issue which the entitlement date will be determined at a later date. We reckon that short-term consolidation is likely to occur in view of the deep overbought situation in the Stochastic and RSI indicators resulting from the sudden surge in share price. As such, we decide to lock in our profit for now, registering an enormous 52% gain on SCGM in merely 3.5 months’ time. Nevertheless, we will revisit the stock when its technical picture turns compelling again.

· UZMA (Take Profit @ RM2.55) yesterday surged 10.0 sen or 4.08% to close at RM2.55. Recall that we have issued a “Trading Buy” in anticipation of the stock retesting its crucial triangle overhead resistance of RM2.22 coupled with high trading volume. Due to its position as a maintenance player which is more resilient towards oil prices and hence more favored by investors, the company has reached our target price of RM2.55. Hence, we decided to take profit on the stock to secure a gain of 17.0%, considering that a potential consolidation could occur in the near-term after the stochastic indicator entered the overbought territory. However, we will revisit the stock again once again if the share price breakout from its multi-month high of RM2.62 in the near-term.

Source: Kenanga Research - 26 Jun 2015