HWGB, warrants up in active trade

by **hlk** Mon 27 Jun 2011, 13:34

KUALA LUMPUR: Shares of HO WAH GENTING BHD [] [] (HWGB) and it warrants rose in very active trade in the morning session on Monday, June 27 as traders were positive on its proposed rights shares with warrants plan.

At 11.41am, HWGB was up 1.5 sen to 43.5 sen with 189.34 million shares done while the warrants rose 2.5 sen to 32 sen with 17 million units done.

The FBM KLCI shed one point to 1,563.66. Turnover was 354.79 million shares valued at RM411.84 million. Losers beat gainers 348 to 176.

HWGB had proposed the renounceable rights issue of up to 152.09 million new rights shares with 76.04 million free warrants on the basis of one rights shares for every four shares held and one free new warrant for every two rights shares subscribed.

OSK Research said in its technical outlook HWGB shares rebounded by slightly more than 10% last Friday, June 24 where it closed at 42 sen.

“Nevertheless, it was considered a bearish rebound as the price action was capped below the downtrend line,” it said on Monday.

OSK Research said it would not be surprised if its share price were to start retracing down again if the stock eventually still fails to crack above this downtrend line.

“From the current level, look for an immediate support at the 36 sen level followed by the 33.5 sen level and the 31 sen level.

“To the upside, we are eyeing an immediate resistance at the 47.5 sen and 49 sen area followed by the 51.5 sen level. For now, its near-term technical outlook is firmly bearish