· JAKS (Not Rated). JAKS has risen for 3 days consecutively to settle at RM0.975, supported by strong buying volume. It was reported that JAKS’ EGM has approved its venture into engineering, procurement and construction (EPC) contracts worth RM5.72b for its 25-year buildoperate- transfer power plant project in Vietnam. Chart-wise, the share price is trading fairly close to its +1.0 regression level and above all of its SMA levels, as it looks to retest its previous high level of RM1.02 (R1). Key indicators showed mixed views, with MACD trading above its positive Signal line and RSI hooking upwards but Stochastic indicator showed that the stock is at overbought zone with downward trend signal. All in, should the group secure new contracts to catalyse and boost investors’ interest, we expect the share price to rally towards its immediate resistance level of RM1.02 (R1) while the immediate support level is placed at RM0.87 (S1).

· SKPRES (Not Rated) has been consolidating after it hit the high of RM1.58 at end of July 2015. SKPRES won RM3.0b worth of contract from its existing customer, Dyson Ltd yesterday to produce its new range of cordless vacuum. In tandem with this positive news, the share price gained 1.0 sen to RM1.35 supported by high daily trading volume. The 14-day Stochastic and RSI indicators have also hooked up to herald the start of an upcycle while the MACD histogram is expanding further. However, should share price break above the +2SD regression line at RM1.40 (R1), the overall trend would turn bullish. That said, it could potentially retest the previous high of RM1.58 next, while immediate support is at RM1.32 (S1). 

Source: Kenanga Research - 17 Sep 2015