Highlights / Stock Picks of the Day - Plenitude Berhad ("PLENITU") – Not Rated

Earlier this month (2nd March), wire news reported that PLENITU had entered into a sale and purchase agreement with Arabayu Sepakat Sdn Bhd in a proposal to dispose of 15 parcels of freehold land for RM49.2m cash. The news was well received by the market, and the share price had over the past three weeks gained 22 sen or 13% to yesterday's closing price of RM1.95. Chart-wise, PLENITU formed a "Bullish Marubozu" candlestick yesterday, following a week-long pause in the recent rally. In fact, the channel resistance has also been breached, and we believe that the bullish move effectively signals a continuation of the uptrend. Should the follow-through buying contunue, we reckon that the share price could
potentially rally towards the RM2.10 projected target. Meanwhile, the RM1.90 resistance has now turned support.

Source: Kenanga