Hot Stock Harbour Link rises 8.3% after Kenanga’s recommendations

by **Cals** Thu 13 Mar 2014, 17:12

Hot Stock Harbour Link rises 8.3% after Kenanga’s recommendations

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Thursday, 13 March 2014 15:31

KUALA LUMPUR (Mar 13): Harbour-Link Group Bhd shares were among the top gainers on the stock exchange today following Kenanga Investment Bank’s analysis and recommendation on the stock.

At 2:44 pm today, shares of the company rose 14 sen or 8.33% to RM1.82 per share with 1.55 million trades done.

The integrated logistics provider in East Malaysia is said to be an “unearthed gem” in Bintulu.

The research house confirmed a “bullish flag” breakout for the stock.

“The increasing trading volume coupled with the improving readings from the key momentum indicators suggested that Harbour is well-positioned to resume its bullish uptrend,” said the note.

“We expect follow-through on the buying today, and an eventual move towards the RM2.50”

The research house sees an initial resistance level at RM1.82, with subsequent targets at RM2 and RM2.5.

A stop-loss of RM1.53 was placed on the stock.

In a phone interview today, analyst Lim Sin Kiat of Kenanga Investment Bank told theedgemalaysia.com that the company was embarking on a maiden venture into property development.

“The key catalyst for the stock is its acquisition of a 130 acre industrial land next to Bintulu Port. The estimated GDV of this industrial/commercial township is RM1 billion at average selling price of RM250 per square foot.”

Lim feels the GDV figure is conservative as “there is still a lot of room to grow in Sarawak.”

Lim has also forecast a jump of 56% in net profit for the company in FY15 arising from its property segment.