KUALA LUMPUR: Shares of Econpile Holdings Bhd shed more than 3% in early trade Monday despite news on potential revival of several key infrastructure projects.
The piling and foundation specialist is among the most active counter, shedding 3.79%, oe 2.5 sen to 63.5 sen with 12.28 million shares traded.
In a business daily, Econpile reportedly believed it will be one of the first beneficiaries of the East Coast Rail Link (ECRL) and Bandar Malaysia mega development that will be restarted as announced by Putrajaya last month.
Econpile’s outstanding order book of RM950mil will keep it busy for about 18 months. It has already won RM640mil in new orders in the current fiscal year.
Apart from the reinstatement of ECRL and Bandar Malaysia projects, Econpile believed that Putrajaya is also looking to revive other infrastructure projects such as the Kuala Lumpur — Singapore High-Speed Rail and MRT3.
Meanwhile, Econpile-WA has a technical buy by PublicInvest Research.
The research house said Econ-WA rebounded off its medium term EMA last Friday. Improving RSI and MACD indicators currently signal reasonable entry level, with anticipation of continuous improvement in both momentum and trend in near term.
“Should resistance level of 26 sen be broken, it may continue to lift price higher to subsequent resistance level of 28.5 sen,” it said, adding that the maturity date of Econpile-WA is on Jan 2, 2023.
However, it said failure to hold on to support level of 22 sen may indicate weakness in the share price and hence, a cut-loss signal.