Mar 15, 2013

Stock Watch - Malaysia Airport

Airport Stock Code 5014

Since the end of 2011, AIRPORT's share price had been trading within a tight RM1.00 range. The share price had been mostly uninteresting in that timeframe, though we noticed that volatility had picked up in recent months. The swings in price action had resulted in the formation of a “Symmetrical Triangle" pattern on the daily chart.

below: Malaysia Airport daily chart (click to enlarge)

malaysia airport

Of note, AIRPORT managed a decisive breakout of the triangle resistance yesterday, when the share price advanced 15 sen at RM5.80. With the resistance now turned support, the technical picture indicates that a new bullish trend is already in the making. The MACD indicator has also shown a pick-up in bullish momentum. As such, the share price is likely to continue upwards from  here. Immediate support can be found at RM5.70 and RM5.50, while overhead resistance will likely be met at RM6.00 and RM6.30 next.

by Kenanga Research

The core activities of Malaysia Airport include the management, operation and maintenance as well as development of airports with primary importance being placed on the operational efficiency, safety and security of passengers, cargo and aircraft operations. Besides its core business activities, MAHB has in its corporate structure, a few subsidiary companies to offer a range of aviation and non- aviation-related products and services.