Hot stock

  • Business
  • Saturday, 01 Feb 2003

MBM Resources Bhd 


MBM Resources Bhd is generally well liked by analysts. A major plus point is that the management is quite clear on its strategy to face the challenges brought about by Afta (Asean Free Trade Area). MBM owns 23.6 per cent of Perodua. Its subsidiary Daihatsu (M) Sdn Bhd is the sole distributor of Daihatsu vehicles.  

Over the week, it was announced that Perodua was the fastest growing national car make last year. It chalked up a growth of 15 per cent against Proton's 7 per cent. In that period and within the national car segment as well, Perodua gained 2.7 per cent market share from Proton. Perodua sold 127,478 units in 2002 with a market share of 37.2 per cent in 2002.  

MBM offers a cheaper entry into the second national car project Perodua. Its undemanding valuation and lower risk profile make it an attractive long-term investment. 

For the nine months ended September 2002, MBM's net profit grew to RM74 million from RM58 million in the nine months of FY01. 

The stock hit a 52-month high and low of RM3.51 and RM2.26 respectively. It closed the week at RM2.69 – by Anita Gabriel 

Technical analysis 


THE previous bullish cycle of this stock lasted for about 10 months, pushing prices up from the RM1.20 level to peak at RM3.50 on May 20 last year. 

Subsequently, it retreated on profit taking and to correct its overbought condition. Having retraced about 50 per cent of the previous upward cycle, it finally bottomed out at the RM2.43 level on Oct 9, 2002. Prices have been making higher lows during the current gradual recovery process over the past few months and attempted to cross above the 21-day moving average price line of RM2.70 on Thursday. 

Volume is seen picking up again. Technically, the current upward momentum remained intact. 

The stochastics momentum index has issued a short-term buy signal on Wednesday. Meanwhile, the14-day moving average line has made a “golden crossing” against the 21-day moving average line on Thursday. 

These positive signals are suggesting that this stock has further upside potential. It is poised to challenge the one-month old high of RM2.90 in the immediate term and could achieve an upside objective of RM3.24 in the medium-term. 

Crucial support is at RM2.60. – by K. M. Lee 


  • The comments above do not represent a recommendation to buy or sell 


  • Article type: metered
    User Type: anonymous web
    User Status:
    Campaign ID: 1
    Cxense type: free
    User access status: 3

    Did you find this article insightful?


    Next In Business News

    Moody's affirms Malaysia's A3 rating; maintains stable outlook
    Thai fin ministry cuts 2021 GDP growth outlook on tourism slump
    China's Didi raises US$300mil for autonomous driving unit
    Gold falls as safe-haven appeal shifts to dollar
    Digital network redesigned to meet higher demand amid MCO
    China stocks post biggest drop in over 6 months on policy tightening fears
    Japanese shares rack up biggest fall in 6 months as tech shares slide
    Allianz gets approval to set up insurance asset management firm in China
    Philippine economy shrinks at slower pace in Q4, posts record contraction in 2020
    Maybank to spend RM500k to upskill non-clerical employees

    Stories You'll Enjoy