Trading Room – 18th Oct 2018
The Light Rail Transit Line 3 (LRT3) project has received the Government’s greenlight to continue at a total project cost of RM16.6bil, according to separate filings by Malaysian Resources Corp Bhd (MRCB) and George Kent (M) Bhd.
The shares of MRCB and George Kent had moved sharply higher just before market closed yesterday. While the news is not exactly new and not unexpected, it may lead to sympathy buying on other construction stocks, which has been sold down.
While any spike could be just a bear rally for the sector, it could be a tradeable rally on strong oversold condition. You should focus on the following construction stocks as highlighted in the mPower Algorithm if you want to trade the sector.
We have appended the critical levels for major construction stocks which should also be the stop loss levels. Entry should be made at market opening for aggressive traders. Exposure has to be managed as the sector is still in a downtrend and the overall market is weak albeit a rebound ongoing.