Highlights / Stock Picks of the Day - Guinness Anchor Berhad ("GAB")

Recall that on the 9th of November, we set our sights on GAB to which we recommended a “buy on weakness” at RM16.00-RM16.20. In the subsequent days, the RM16.20 entry price was triggered, and the share price rallied to a high of RM16.96  before giving up some gains to yesterday’s close at RM16.62. Amid  the dismal backdrop in the local bourse,  we  reckon  that  it  may  be  an appropriate strategy to buy into defensive stocks with GAB among the ranks. The share price has yet again retreated to the trend line where it is seen consolidating and along with the still bullish technical indicators, we expect that probability
favours the upside from here. That said, we are bullish on GAB from a technical stand point, though a tight stop loss should still be placed 2 bids below last week’s low of RM16.50.

Source: Kenanga