Institutional Strength

Lately, the Malaysian hajj pilgrims fund board (a significant institutional investor), Lembaga Tabung Haji (“LTH”) has been increasing its position in Ranhill Holdings Berhad (“Ranhill”), as shown below:

Ranhill_may 16.pngInsiders’ purchases / transactions by substantial shareholders, e.g LTH’s recent purchases will provide price support to Ranhill from further downward pressure due to prevailing negative market conditions. We believe that LTH is currently attracted to Ranhill’s expected dividend yield of in excess of 6.0%.

Technically Speaking

Ranhill_may2016_graph.png

Given its attractive dividend yield, we think Ranhill is currently in “oversold” position (shown in RSI, William%R and CCI), as shown above, as well as it has touched the lower bound of the Bollinger Band. Potentially, one may consider RM1.15 as the immediate profit target price, should Ranhill bounce upwards.

 

DISCLAIMER: ALL ARTICLES CONTAINED IN THIS SITE ARE FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES MENTIONED ABOVE.

Author: Ken Utau

Markets Observer + Food Lover

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