KUALA LUMPUR (June 29): Shares in KUB Malaysia Bhd rose as high as 15% today following a positive technical on the stock.
As at 10.17am, the stock pared some of its gains and rose five sen to 46.5 sen, valuing it at RM258.76 million. KUB had earlier risen to a high of 48.5 sen.
AllianceDBS Research said KUB last Friday gapped up to reach a high of 45.5 sen before closing at 41.5 sen (up 2.5 sen or 6.44%).
In its evening edition last Friday, the research house said KUB continued to trade above 20-day (blue) and 50-day (red) moving average lines.
It said the upside gap indicated the urgency to establish stock position.
It said following the close last Friday, the stock is likely to move higher with an immediate hurdle at 46 sen.
"A crossover of 46 sen should see further price rise to the next overhead resistance zone, 50 sen – 53 sen.
"The support is pegged at 38 sen. A fall below 38 sen would put pressure on the stock down to the subsequent support zone, 34.5 sen – 35.5 sen," it said.
AllianceDBS Research said stock volume traded last Friday was 52.3 million shares compared with its three-month average volume of 7.95 million shares.