Wednesday 29 Nov 2023
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KUALA LUMPUR (July 28): Kenanga Research said MUI Properties Bhd (MUI Prop) is a proxy to soaring gold prices (which has risen 7% the past week to US$1,940/oz currently, taking its year-to-date [YTD] gain to 28%).

In a technical watch note today, the research house said the stock is a laggard play following the sharp share price run-ups in listed jewellers Poh Kong Holdings Bhd and Tomei Consolidated Bhd (up 36% and 52%, respectively).

Kenanga said MUI Prop’s gold exposure is via its 40.7% stake in Nex Metals Explorations Ltd, a listed company in Australia which is involved in gold exploration.

It said that on the chart, the stock has been in a range-bound phase after rebounding from a trough of 14.5 sen in March this year.

“As buying interest returns (the stock was up 8% on strong volume to close at 19.5 sen yesterday), its share price may be on the verge of breaking out from a sideways trading pattern.

“If so, then MUI Prop shares could be on the way to test our resistance thresholds of 24 sen (R1) and 28 sen (R2), which implies upside potentials of 23% and 44%, respectively.

“Our stop loss level is pegged at 16 sen (or 18% downside risk),” it said.


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