· TOMYPAK (Close Position). Back in 24 Jun-15, we placed a Trading Buy call on TOMYPAK (Last price @ RM1.75) in view of its technical breakout from the ‘Descending Triangle’ chart pattern. However, the share price failed to ride on its bullish momentum as it has been consolidating since then. Despite efforts to break away from its consolidation phase, key momentum indicators (Stochastic and RSI) are looking to roll over from its overbought territory to imply further sideways trading. As the share price failed to perform according to our previous technical expectations, we are closing our position on this counter.

· BIOHLDG (Close Position) has been consolidating since late-April after it reached a peak at RM0.48. Yesterday, it rose marginally to close at RM0.32, with higher trading volume. Recall that we issued a “Trading Buy” call on 19-Jun-15 (last price @ RM0.30) with a then TP of RM0.36, based on a strong rebound expectation. However, the share price did not perform according to our expectation and has been hovering between a range of RM0.28- RM0.35. Although key indicators such as MACD showed that the stock is still trading above positive Signal line and RSI indicated that the stock is trending upwards, Stochastic has already entered into the overbought zone, suggesting a possible reversal in the near term. As our previous technical outlook (bullish ‘Triangle’ breakout) is unlikely to prevail, we decided to close position and will revisit the stock once it becomes attractive again.

Source: Kenanga Research - 22 Jul 2015