May 12, 2014

Buy on weakness – Mitra

Mitrajaya Holdings Bhd (stock code 9571) RM0.785.

mitra_analysis above: Mitra daily chart (click to enlarge)

In the news (The Star 7/5/2014): Mitrajaya to develop landbank
SITTING on land worth over RM600mil, Mitrajaya Holdings Bhd’s market capitalisation appears small at slightly over RM300mil. But that is the problem that almost all companies with property held for development face – the market does not attach a premium for property that has yet to be developed.

Mitraland is in the construction and building material business .The immediate support is the mid-channel  at around RM0.765, which is around its 10-day moving average. Currently, it is pulling  back  slightly  from  its  recent  high  of  RM0.815  and  if  the  up-trend  is  to  continue,  a rebound should commence.

In the near-term, its technical indicators are in mainly neutral positions that should provide the rebound flexibility and its immediate target is its previous high at RM0.815. However, on the downside, a fall to below the mid-channel line at R0.765 calls for trading caution.

by Mercury Securities

Mitra Holding Berhad is an investment holding company. The Group's core business is civil engineering, property development, building and road construction.