UEM Land Bhd’s shares have regained some lost ground over the last couple of days after falling to its three-month low of RM2.01 on Feb 6.
According to some technical analysts, fresh buy signals have since emerged for the shares of UEM Land even as the property developer is expected to announce strong fourth-quarter results by the end of this month.
In a report, a technical analyst from TA Research pointed out that trend indicators were supporting a further upside bias for UEM Land’s share price, with a higher profit resistance seen at RM2.31. The analyst pegged the key support level for UEM Land’s shares at RM2.02.
Amid a down market yesterday, UEM Land’s shares still managed to gain two sen to close at RM2.24.
A Bloomberg survey of 13 research houses that have updated their ratings on UEM Land since last November puts the average 12-month target price at RM2.40 for the counter.
UEM Land is liked mainly for its exposure to the rapidly developing Iskandar Malaysia project in Johor. The company is the largest landowner in the southern development corridor, with 5,145 acres of undeveloped landbank in Nusajaya and 680 acres in Desaru.
The company, which is 65%-owned by Malaysia’s state investment arm Khazanah Nasional Bhd, is also seen as a frontrunner for government land development projects in the Klang Valley, which could be rolled out after the general elections.
Maybank Investment Bank Bhd said in a recent report that securing government land development projects would provide a strong impetus to UEM Land’s earnings and valuation.
from thestar.com.my
The comments above do not represent a recommendation to buy or sell.
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