Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 6): Hong Leong Investment Bank (HLIB) Research said while the recovery outlook for the aviation sector seems promising, the lingering concern over Capital A Bhd’s PN17 status remains a sentiment dampener.

In a technical tracker on Tuesday (Sept 6), the research house said it gathered that the regularisation plan is currently being finalised and will be submitted to Bursa Malaysia soon (deadline: January 2023), and HLIB is hopeful about Capital A’s restructuring plan as the management has managed to convince auditor E&Y on the group’s cash flow ability for the next two years.

“As far as its PN17 status is concerned, we think the tepid sentiment in Capital A will turn around once the regularisation plan is approved by the exchange, posting a short-term trading oriented opportunity.

“Technically, Capital A is currently is building a strong base at the 58 sen to 60 sen levels.

“A successful breakout above the 66 sen resistance will spur greater upside towards 70 sen-77 sen-84 sen. Cut loss at 56 sen,” it said.

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