KUALA LUMPUR (March 23): Kenanga Research said Genting Malaysia Bhd (GenM)’s share price is on the verge of overcoming a negative sloping trendline, triggered by the positive signals arising from: i) RSI indicator climbing out from oversold territory; and ii) stock on the verge of moving back above the lower Bollinger Band.
In a daily technical highlight note on Thursday (March 23), the research house said GenM’s share price has fallen 16% since January 2023 to close at RM2.56 on Wednesday.
It said with the share price currently fluctuating near its support line of RM2.53, a level that was previously tested in October and December 2022, a technical rebound could be forthcoming.
“Hence, the stock could rise to challenge our resistance levels of RM2.82 (R1; 11% upside potential) and RM2.98 (R2; 16% upside potential).
“We peg our stop loss at RM2.30, representing a downside risk of 10%.
“Going forward, the consensus is projecting the group to make [a] net profit of RM1 billion for FY December 2023 and RM1.27b for FY December 2024, translating into forward PERs of 14.5x and 11.4x respectively,” it said.