· Keep an eye on… SLP (NR) and TOPGLOV (NR). SLP has been trading in the range of RM1.44-RM1.58 for the past 1.5 months. Readings from key momentum indicators are relatively neutral, coupled with thin daily trading volume, implying that buying interests is tepid for now. However, we view that this is a good opportunity for investors to accumulate SLP. Similarly, TOPGLOV has been consolidating within the range of RM7.50-7.90 for the past two weeks. The primary trend remained up as the share price is well supported by all SMAs. Nevertheless, key indicators such as Stochastics and RSI are hovering near the overbought territory, suggesting that a near-term consolidation is possible. To conclude, we are positive on both SLP and TOPGLOV as they are amongst the key beneficiaries of the strengthening of USD against MYR. Thus, investors may look to nibble these stocks at their respective immediate support levels of RM1.44 (SLP) and RM7.50 (TOPGLOV). Do note that both SLP and TOPGLOV are Top Picks for 3Q15 strategy.

· KAREX (NR). Yesterday, KAREX inched up 2.0 sen or 0.58% to close at RM3.49, settling way above all its key SMAs. The share price has been consolidating for more than two weeks after reaching its all-time high of RM3.60. Chart-wise, it is seeking to break out from its pennant chart pattern. All key indicators are still moving sideways and hovering on the higher side. Thus, we believe investors who are looking into the stock can enter at its immediate support level of RM3.47 as the share price is capable of reaching our objective measurement of RM3.99 once the buying momentum picks up to break the pennant pattern.

· TEOSENG (Close Position @ RM1.59). Yesterday, TEOSENG slid 2.0 sen or 1.24% to close at RM1.59, settling below its 50-day SMA. Recall that we issued a “Trading Buy” on the stock on 23 July backed by increasing trading volume as well as reversal signals from MACD and Stochastic indicators. However, the share price did not perform according to our expectation and the technical picture turned sour coupled with weakening buying momentum. Both RSI and Stochastic indicator are trending down, portraying more downside bias. As such, we decided to close the position and we shall revisit the stock when the outlook becomes favourable.

Source: Kenanga Research - 5 Aug 2015