KIMLUN (Not Rated). Yesterday, a contract to develop and upgrade a portion of the Pan Borneo Highway in Sarawak worth RM1.46b was awarded to a consortium consisting of KIMLUN and ZECON. This led to KIMLUM surging and closed 10.0 sen (6.13%) higher at RM1.73. Technically speaking, KIMLUN has staged a breakout from its multi-year high level of RM1.67 (S1) in tandem with very strong trading volume. The underlying outlook is currently bullish as the share price is trading above all its uptrend SMA levels. The MACD histogram is also undergoing a bullish convergence on the back of uptick in both RSI and Stochastic, lending a hand on the bullish-bias trajectory. From here, we view that the follow-through buying interest on the bullish news announced yesterday could lead the share price to trend towards RM1.81 (R1) and possibly RM2.00 (R2) next. Meanwhile, immediate support is seen at RM1.67 (S1) followed by RM1.52 (S2).

TDM (Not Rated). Small cap plantation companies saw a resurgence of buying interest yesterday, following the positive outlooks given by speakers at the Palm and Lauric Oils Conference & Exhibition earlier. In particular, TDM rose 4.0 sen (5.7%) to close at RM0.74 on high trading volume. Chart-wise, TDM has broken above the RM0.69-RM0.72 congestion zone, and formed a bullish “White Marubozu” candlestick to reflect the sustained buying throughout the day. The MACD and RSI have also hooked upwards to indicate strong buying momentum. Hence, we expect TDM to climb towards the January high of RM0.785 (R1) in the near-term. Further resistance is located at RM0.80 (R2), while downside support levels are RM0.72 (S1) and RM0.65 (S2). 

Source: Kenanga Research - 11 Mar 2016