· TOMYPAK (Not Rated). Despite the strong 3Q15 earnings release (+170.8% YoY, +3.6% QoQ), TOMYPAK’s share price was not spared the recent sell-down in small cap shares. The share price retreated from a high of RM3.00 earlier this month to as low as RM2.41. Nevertheless, TOMYPAK’s uptrend remains intact, with the share price firmly supported by RM2.40 (S1) resistance-turned-support and the 50-day SMA. In fact, the share price staged an intraday rebound yesterday after retesting this level before ending the day at RM2.61 (+8.0 sen). From here, we expect the RM2.40 support to continue to hold, and envisage this level to provide a good entry point for traders looking to bargain hunt. Further support can be found below at RM2.23 (S2), while overhead resistance is located at RM2.70 and RM3.00 further up.

· HALEX (Not Rated). HALEX’s share price has attracted renewed buying interest after The Edge weekly featured the company on the front page. According to the article, Halex’s newly acquired 70%-owned subsidiary had been granted a contract for 50,000 MT of white rice, in addition to an earlier contract to procure and package 80,000 MT of rice under the Food Bank project. For the day, the share price registered a 5.5 sen (+11.0%) jump to end at 55.5 sen yesterday on high volume. Technically, the MACD has hooked up after yesterday’s rebound from the short-term trend line support. We expect the share price to retest last week’s high of 60.0 sen (R1) next. Further resistance is located at 71.0 sen (R2) while support can be found at 50.0 sen (S1) and 46.0 sen (S2).

Source: Kenanga Research - 1 Dec 2015