· PESTECH (Take Profit @ RM5.95). To recall, we issued a Trading Buy on PESTECH on 14 Aug 2015. Its trading pattern has been choppy for the past two months. Yesterday, the share price surged up to a day’s high of RM6.02 supported by high daily trading volume, settling at recent high of RM5.95 (+1.71% D-o-D) at the close. The underlying trend remains up as the share price is trending above all key SMAs. Indicator-wise, Stochastic is venturing into the overbought territory, while RSI is inching upwards, suggesting the strong buying support. Nevertheless, we are taking profit on PESTECH as the share price has already met our target price of RM5.95.

· UMW (Stopped-out @ RM7.59). To recap, we issued a Trading Buy call on UMW on 18-Sep-15 in anticipation of potential rebound play after the counter showed positive key momentum indicators (golden crossover by MACD, and reversal of RSI and Stochastic from deep oversold territory). However, the share price has since failed to ride on the rebound rally as it continued to ride on its downtrend to close below our stoploss level of RM7.70 at RM7.59. In view of the stop-loss being triggered and bearish share price outlook (potential further downside after the company announced a possible price hike in Toyota cars recently), we are stopping-out on our position on this counter. 

Source: Kenanga Research - 7 Oct 2015