DAYANG (Not Rated). A favourable recommendation by a local research house coupled with improved sentiment towards O&G counters drove DAYANG’s share price to the RM1.00 psychological mark yesterday (up by 4.0 sen or 4.2% on high volume of 3.1m shares). Chartwise, DAYANG appeared to have bottomed out in November (RM0.73) and is now poised for a healthy recovery. More importantly, the 20- and 50-day SMAs have just completed a “Golden Crossover”, while the share price has also broken above the long-term 100-day SMA for the first time since April. From here, we expect DAYANG to be biased to the upside towards RM1.12 (R1) and RM1.22 (R2). Any return to the RM0.93 (S1) support can be viewed as an opportunity to enter, with stronger support present at RM0.90 (S2).

PERISAI (Not Rated). PERISAI surged for a 2nd straight day to RM0.09, up by 1.5 sen (20.0%) on huge trading volume of 126.9m shares. This came amid news that the company and Singapore-listed Emas Offshore Ltd (EOL) have came to a settlement which will give it US$43.0m which is crucial for the success of its debt restructuring plan. From a charting perspective, PERISAI’s share price had been moving sideways at the RM0.04-RM0.06 levels these past two months. However, consequent to the price surge this week, the share price has broken out of its short-term sideways consolidation phase to signal a sharp change in sentiment. The MACD has also crossed above the Zero-line to confirm this transition. With the price recovery expected to continue over the near term, we see the RM0.105 (R1) – RM0.12 (R2) gaps as obvious resistance levels. In contrast, any return to the RM0.065 (S1) and RM0.04 (S2) supports should see strong bargain hunting.

Source: Kenanga Research - 29 Dec 2016