State of KLCI
At 1,769 points, KLCI is currently in a bullish mode and should the momentum stay on with sustainable trading volume, it is well poised for more record-setting highs. Meanwhile in the short term the index looks more likely to consolidate further, but any such consolidation may just well be a breather before it continues its climb upwards.
In the current round of rally, many property counters have benefited from the post-election uptick and many second liners have since produced double-digit percentage returns within a short two-week time frame.
Below is a snapshot of Property Index, which explains why property counters will still have some legs to run:
Note that the index has just broken above its major resistance level at 1,270 - 1,280 level and technically this is a sign of a more sustainable upward development for the index and hence all relevant property counters. The Property Index currently stands at 1,417 level with next level target of 2,000 in sight. Based on current momentum and barring unforeseen circumstances, we are talking about hitting the target within 6 - 12 months.
While counters like Huayang, UOA Development, Dijacor, Mahsing, Tambun, have all made their recent highs in the this first round, there are potentially still other laggards that will play catch up in the subsequent rounds of rally. However, today's introduction will focus on a construction turned property development play counter:
Trading Pick - Ekovest Berhad
Traditionally a construction and engineering company, Ekovest Berhad is a potential property play with big integrated development called The Gateway @ KL Bund. Its other property development projects include Eco Business Park in Cheras and Menara Titiwangsa. Together all these 3 projects have a gross development value of RM4.8bil.
On the other hand, Ekovest is also a candidate for the Iskandar Development theme as the group is currently embarking on some construction activities within the Iskandar region. Its CEO's, Mr Lim Kang Hoo is also owner for Iskandar Waterfront Sdn Bhd, which is slated for IPO this year.
While it will be interesting to how these developments will pan out for the group, however, technically, funds flow and share price development over the years for this counter seems to suggest that it is well positioned to further rally with long-term price target of RM 7. For group's financial highlights please see here: Financial Highlights
On the other hand, Ekovest is also a candidate for the Iskandar Development theme as the group is currently embarking on some construction activities within the Iskandar region. Its CEO's, Mr Lim Kang Hoo is also owner for Iskandar Waterfront Sdn Bhd, which is slated for IPO this year.
While it will be interesting to how these developments will pan out for the group, however, technically, funds flow and share price development over the years for this counter seems to suggest that it is well positioned to further rally with long-term price target of RM 7. For group's financial highlights please see here: Financial Highlights
