Recently, PUNCAK had decided to sell its water assets in Selangor state for RM1.6b and distribute RM534.3m from the proceeds as cash dividend to shareholders. Chart-wise, PUNCAK has gapped up by 15 sen to settle above its support level of RM3.43 as well as all three SMA level. Meanwhile, the MACD has also started to diverge from its zero line, undergoing a bullish divergence. Despite the overbought situation shown on the Stochastic indicator, the RSI indicator remains on an uptrend, suggesting that buying support for the stock is still strong. With follow through buying interest on the positive development, we view that the share price could look to retest its previous high of RM3.76 (R2) in the near term.

 

 

Source: Kenanga