Jul 31, 2013

Buy on weakness – Gdex

GD Express Carrier Bhd (stock code 0078) Trading/Services – RM2.84.

gdex above: DEX daily chart (click to enlarge)

A stock that bucked the general trend, GDex is currently trading near its all-time high since its listing. We believe the share price ascend is supported by solid fundamental of growing earnings and capacity. Nevertheless, due to its overbought position, it may undergo a price correction in the short term, with strong current support at RM2.52.

Investors are advised to buy on weakness during any corrections that may emerge from time to time. Over the longer-term, the uptrend channel  is expected to be maintained, backed by its strong fundamentals.

by Mercury Securities