Market Play 1 - SJER - Mulpha, Tebrau & UEM World

There are currently 2 themetic plays on Bursa M'sia, the South Johor Economic Region (SJER) & the Plantation sector. I will consider both plays & some selected counters for each. We start with SJER. This is about the multi billion Ringgit masterplan in the 9th Msia Plan to develop the Southern Johor Corridor, basically around Nusajaya which will be the location for the new State Government & also to take account of the 2 major Casino/Tourism projects in Singapore. The idea is to develop the corridor which consists of major tracks of under-utilised landbanks for housing, industry, government and theme parks to attract tourists from Singapore. As this will inevitably provide major construction works & also increase the value of the landbanks there it will benefit some of the major construction Cos. & landowners in SJER. The PM will make the announcement on development of SJER (headed by Khazanah) tomorrow (Sunday 30 July) & it should be the catalyst to move these counters up.

The three selected counters Tebrau, Mulpha & UEM World, are all major landowners & developers in SJER & have already been part of the "play" on SJER. Is there still room to move, technically? Lets see.

1) Tebrau - Positive break out of the symmetrical triangle on Thursday on better Vol, then had a mild correction Friday. Immediate support is at 0.61 & a pullback to the triangle has support at 0.55. A break below 0.50 is very negative. It is above the 10,21 & 30 day MA but daily MACD & RSI has not made positive moves yet. Hence there is no firm direction unless it has a positive move on Monday. The MA offer strong support at 0.55 also. A break above 0.725 will be very positive & will take it to 0.84 & 1.08. A positive announcement by PM may be the catalyst. So watch this counter for its next move. Aggressive traders can buy but place cutloss at 0.54. Others may wait for another day of positive move before buying.


2) Mulpha - Has been trading rather flat for the last 2 months. It is above a rising trendline, volume has been extremely low, Daily RSI & MACD are flat, but it is just sitting on the 10, 21 & 30-day MA, which is a good sign. Immediate resistance is bet. 1.21 & 1.27. A high volume break above 1.21 & 1.27 will be very positive & will take it to 1.50, then 190/2.00. Signs are good for a positive breakout but a breakdown below 1.14 will be negative. You can place a cut loss at 1.13.


3) UEM World - It has formed a very large symmetrical triangle with prices reaching the tip of the triangle. Something has to happen soon. If it breaks out of the triangle on the upside on high volume, then it is very positive & will have strong upside because the triangle took 3.5 months to form. An upside break on high volume must breach the immediate resistance at 1.82 then 2.10. If that happens then it will possibly reach 2.26 or if there is very strong interest then 3.00. However, a downside break can take it down to 1.50 (cutloss) or 1.26. Daily RSI & MACD are flat but prices are sitting just on the 10, 21 & 30 day MA (which is a very good sign). If the announcement by PM is positive, then expect a positive breakout for UEM World (which is controlled by Khazanah anyway).