Trading ideas: Willowglen, Zelan, MMHE, EA Technique, MMC-Gamuda

KUALA LUMPUR: Willowglen MSC Bhd, ZELAN BHD, Malaysia Marine Heavy Engineering Holdings Bhd, EA Technique (M) Bhd and MMC-Gamuda are among the stocks to watch today, according to JF Apex Research.

Willowglen MSC has secured a RM139.36mil contract from Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd to construct and maintain communication systems for the Gemas-Johor Bahru electrified double-track project.

Zelan has been slapped with a US$1.15 million (RM4.77mil) claim by Chinese power equipment maker Dongfang Electric Corp in relation with a coal-fired steam power plant project in Central Java, Indonesia.

Malaysia Marine Heavy Engineering filed a payment claim of US$30.22mil (RM125.41mil) against EA Technique, just days after it received a US$21.74mil arbitration from the latter.

The federal government has decided to terminate the underground contract of the mass rapid transit Line 2 (MRT2) project, also known as the Sungai Buloh-Serdang-Putrajaya (SSP) line, with contractor MMC-Gamuda.

Meanwhile, US markets tumbled on Friday after employment data lifted US treasury yield to a 7-year high.

The S&P 500 closed 0.6% lower at 2,885.57 while the Dow Jones Industrial Average dropped 180.43 points to 26,447.05.

Similarly, European stocks fell sharply after US jobs data.

JF Apex said the FBM KLCI was expected to test its support of 1,770 points following the bearish performance in the US and Europe.

“Technical indicators are mixed with the RSI hovering below the overbought zone while the MACD is trending lower below its signal line.

“The index tested the 200-day moving average but failed to challenge the threshold. Last week’s losses violated the 50-day moving average further decline could be seen and the next support level is at 1,770 points,” JF Apex said.

Business News , Analyst Reports


Across The Star Online