VS (Not Rated)

• VS jumped 8.0 sen (2.54%) yesterday to reach RM3.23, accompanied by stronger than average trading volume of 13.4m.
• Consequently, the share price has broken out of an ‘ascending triangle’ potentially signalling the start of a bullish trend.
• Momentum indicators are turning bullish and key SMAs are currently in a “golden-crossover” state.
• Following yesterday’s announcement on the proposed bonus issue, we expect follow-through buying to drive VS towards RM3.56 (R1), with further resistance at RM3.83 (R2). Any near-term dip towards the resistance-turned-support level of RM3.14 (S1) offers a good entry point with further support at RM2.71 (R2).

GKENT (Not Rated)

• GKENT surged 23.0 sen (6.0%) yesterday, finishing at the day’s high of RM4.09, accompanied by strong trading volume of 2.7m – tripled its average volume.
• “Marubozu” candlestick indicates that bulls dominated entire trading day.
• Overall outlook remains bullish with share price firmly above key SMAs whilst momentum indicators showed upticks.
• Expect follow-through buying towards RM4.40 (R1) and RM4.70 (R2) further up.
• Conversely, downside supports can be identified at RM3.70 (S1) and RM3.40 (S2).

Source: Kenanga Research - 26 Jan 2018