UEMLAND: Building its base above RM2.70 level

UEMLAND:
 Khazanah and Temasek latest JV to develop four key sites in Singapore and Malaysia, with an estimated RM30bn GDV, should bode well for further asset reflation and narrowing of land price differential between Singapore and Iskandar.
 Meanwhile, UEMLAND can leverage on recently acquired Sunrise’s strong branding and execution track record to enhance the success of Nusajaya, especially showcase project Puteri Harbour high-end mixed development. Sunrise’s mature projects in Klang Valley will also diversify UEMLAND’s earnings base.
 The pullback from 52W high of RM3.40 (13 Jan) appears to be at its tail end, as prices have broken out of its 5-month sideways consolidation after last week’s high of RM2.90 (27 June). It closed at RM2.77 yesterday on profit taking consolidation.
 We would be more confident if prices can breach the upper Bollinger band of RM2.84, before retesting RM2.90 and RM3.09 (23.6% FR) territory. Tough resistance zones are RM3.20-3.40. Immediate supports are RM2.74 (lower Bollinger band) and RM2.70 (uptrend line support).
 Cut loss below RM2.66 (6 May closing).