Hot Stock Hovid share, warrant rise on proposed dividend

Hot Stock Hovid share, warrant rise on proposed dividend
Business & Markets 2013
Written by Jeffrey Tan of theedgemalaysia.com
Tuesday, 17 September 2013 14:49

KUALA LUMPUR (Sept 17): HOVID BHD [] shares and warrants rose among the bourse's most-actively traded entities today.This came on the pharmaceutical product manufacturer's proposed dividend.

Last Friday (Sept 13), Hovid declared an interim dividend of 1.3 sen less 25% tax for financial year ended June 30, 2013.

At the 12.30pm market break today, Hovid shares rose 0.5 sen or 1.8% to 28 sen on volume of some 15.8 million shares. Meanwhile, its warrant climbed 0.5 sen or 3.4% to 15 sen on 20.5 million units.

While the mother share was the eighth most-actively traded counter, its warrant ranked fifth.

Technical analysts see potential upside for Hovid shares. In a note today, RHB Investment Bank technical analyst Mohammad Ashraf Abu Bakar said Hovid should rise after printing a new 52-week high.

A position can be initiated if it stays above 27 sen today, with a close below 25 sen as a stop-loss.

“The target price is 32.5 sen if the resistance at 30 sen is broken. A failure to stay above 27 sen, however, could see the stock trading sideways, with further support at 23 sen,” said Mohammad Ashraf.

Meanwhile, Kenanga Research said in a note that the forecasted immediate support for Hovid shares is seen at 26 sen while the resistance level is at 28 sen.