KUALA LUMPUR (Dec 3): Halex Holdings Bhd's shares rose 3.25% in early trade today on renewed buying interest.

At 9.11am, Halex gained 2 sen to 63.5 sen with 838,400 shares done.

AllianceDBS Research said renewed buying interest had emerged in Halex and that Halex had on Dec 2 crossed over the 57.5 sen hurdle to reach a high of 62 sen before settling at 61.5 sen (up 7 sen or 12.8%).

In its evening edition yesterday, the research house said the crossover of the 57.5 sen hurdle would likely see Halex trading upward with the next upside target pegged between 69 sen and 71 sen.

It said risk-taking traders could establish a buying position at RM0.595 on a small pullback.

"Once a buying position is established, a stop loss at 57.5 sen level must be placed for risk capital protection, and this 57.5 sen is to be followed by a trailing stop loss strategy.

"If you are prepared to take a trading loss risk of RM20 (excluding brokerage) for RM95–RM115 potential profit, you may acquire 1,000 shares with a capital amount of RM595 assuming buying order is filled at 59.5 sen," it said.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)