TM (RM3.04)Telekom Malaysia Bhd is currently trading on a linear uptrend. Most importantly, it’s about to make a new near term high above the 3.04 resistance. It is very likely that TM will succeed and in doing so, would invite more buying volume in the days ahead.
We think that TM is a laggard play compared to its sectoral counterpart AXIATA which has already rallied 68% from its April low. In comparison, TM has only rallied 16% from its April low. We think that due to its laggardness, downside is minimized for TM while upside is considerable once it succeeds in breaking above the 3.04 resistance.
TA (RM1.15)TA Enterprise is coming to a major resistance hurdle at the 1.20 level. As such, our buy mode will only be triggered if and when TA breaks above this 1.20 level.
Considering yesterday’s property rally wave (Property index up 0.7%) momentum, we opine that TA will break above the 1.20 resistance soon and create a new near term high. News in the papers today highlighting TA’s plans to buy a firm which owns a 4- star hotel in Singapore will also add fuel to TA’s rally.
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