Highlights / Stock Picks of the Day - Lafarge Malayan Cement Bhd ("LMCEMNT")

On the 19 Sept., we recommended a technical buy on  the stock at RM8.78. Since then, LMCEMNT’s share price has surpassed our expectations, rising 16% to a high of RM10.18 (25 Oct.). However, the following weeks saw the stock being dragged down along with the poorer sentiment on the broader market. In fact, LMCEMNT broke below the trend line support yesterday with a 38 sen decline  to RM9.12. The technical picture has deteriorated as a result of the sharp downward move, and the technical indicators suggest that further downside is likely. We reckon that in light of the changing circumstances, traders should look to sell into strength closer to the RM9.30 support-turned-resistance line.

Source: Kenanga