DKSH Reaches a Nearly Five-Year High After an Analyst Establishes a Resistance Level of Rm6

0 5

The share price of DKSH Holdings (M) Bhd crossed the RM5 threshold for the first time since February 2017 on Tuesday, following a research house’s prediction that the counter is likely to restart its uptrend.

The counter increased 6.65 percent or 33 sen to RM5.29, its highest level since November 24, 2016.

At 4.20pm, the stock was trading at RM4.98, up two sen or 0.4 percent from the previous Monday’s close, but still up RM1 or 25.12 percent.

The counter has increased by 71.7 percent in the last year, from RM2.90 on Sept 28, 2020.

DKSH Holdings – which operates retail locations selling the Famous Amos cookie — has a market value of RM785 million at the current price.

Al Emri Izzat Shah Albakri, technical analyst at RHB Retail Research, stated in a report on Tuesday that DKSH is poised to restart its uptrend after breaching the immediate resistance level of RM4.78.

“Buying pressure over that level is projected to push the stock up to the next resistance level of RM5.35, followed by the RM6.00 mark. This expectation, however, will be cancelled if it goes below the RM3.82 support level,” he warned.

DKSH’s net profit climbed more than thrice to RM25.4 million in the second quarter ended June 30, 2021, from RM7.83 million a year before. Revenue increased to RM1.78 billion in the third quarter, up from RM1.45 billion in the previous quarter.

Cumulative first-half net profit increased 175.86 percent to RM49.48 million from RM17.94 million in the January-June period last year, boosted by unrealized derivative profits on interest rate swaps and a drop in interest payments due to lower borrowings.

Revenue for the first six months increased 11.46 percent to RM3.54 billion from RM3.17 billion.

Published by Zack Baharum

Leave A Reply

Your email address will not be published.