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Lian Beng, Will It Resume The Uptrend If STI Rebound?
Trend Spotting | 29 April 2014
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By: Robin Han
Articles (102) Profile

For the recent rally of the Straits Times Index (STI) since late March, one of the strong sectors that moved much is property sector which became a market leader. It is likely to remain strong for some time and may provide more opportunities to investors in near future.

In the past a few days, the STI hit the resistance at around 3280 and pulled back, and it may be an opportunity to buy on dips.

However, to avoid the market to sell down further, it may be safer to consider strong stocks which have better potential to run again if STI rebounds or resumes the uptrend.

Lian Beng is a good candidate that investors may look at. After a consolidation from July 2013 to Jan 2014, it started to move nicely in the past month or so.

The movement also makes it one of the leading stocks in the property sector. Both Moving averages and the MACD histogram are indicating bullish signals at this moment.

The sell down on the STI on 25 and 28 May did not affect Lian beng a lot, as it just saw a mild pull back with significantly shrunk volume, indicating that the support at around 0.7 is strong and the sellers are relatively weak.

From the fundamental perspective, the recently financial statement released on 10 April reported a surge of net profit for 113 percent on yearly basis, indicating that the company is not only stable but having a nice growth as well, which makes it a relatively safe investment.

One may consider to buy if it breaks the high for the past few days and can probably expect Lian Beng may resume the uptrend thereafter.

Robin Han is a Ph.D in Department of Chemical and Biomolecular Engineering and has got a solid foundation in the financial markets.

Please click here for more information about this author.

Lian Beng Group  0.510 -0.005 -0.97%   
Business: A construction co with integrated civil engineering & support service capabilities. [FY18 Turnover] Construction (43.6%), mfg of concrete (24.4%), ppty development (14.5%), dormitory (9.1%), investment holding (8.3%), engineering & leasing of machinery (0.1%).

Insight: Apr-19, 9M19 revenue dipped 1% due to decreased re... Read More

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