Total waste management (TWM) solutions provider, involves in recycling of electronic products and equipment that are near their useful life and are replaced by the rapid advances in technology. Expects higher average selling prices (ASP) of precious metals such as metal scrap, aluminum, copper and tin will continue to be driven by strong demand of commodities product globally, resulting in better margin. Diversification into renewable energy will provide earnings visibility over the long run. Technically, traders may anticipate for a breakout above RM0.37 to target the next resistance of RM0.40-0.425, with long term target at RM0.475.
All eyes in 3Q GDP
The FBM KLCI edged lower amid uncertainties surrounding the recent political
developments, as well as the Covid-19 pandemic, contributing to the investors
staying sidelines. This would result in heightened volatility in the market and
traders should turn more cautious over the near term in selecting stocks to trade.
On a side note, China’s move to raise export tariffs on some steel materials, and
removed rebates on cold-rolled products may exert pressure on the commodities
prices as demand continues to rise over the past year.
While there will be no financial impact on JAKS, we view the matter to be favorable to restore JAKS reputation amongst investors after being clouded by uncertainties over the past 2 years amid concern over potential impairments from the aforementioned matter. Moving forward, JAKS will continue to focus on current operations as well as business expansion plans, particularly in the power and renewable energy business segment.
The FBM KLCI closed mildly positive following the late bargain hunting activities,
but gains were capped amid unrelenting Covid-19 cases as well as the recent
political developments. Despite daily Covid-19 infection continue to be on the rise
amid ramped up testing in Klang Valley, we expect the vaccination rate should
brush off negative sentiment and traders may look for recovery opportunities. Also,
both the Hang Seng Futures and overnight Wall Street could be due for a technical
rebound and may spillover towards stocks on the local front, especially on the tech
sector. Commodities wise, CPO price was down as demand were seen slowing
down from India and China, while the crude oil extended its gains.