Malaysia's Property Index (Property) has been working on its way up since the September low of 1,062 and it looks like there is more upside to come, in our opinion.
Property has not been performing for the past year or so, where it has traded within the LT downtrend channel.
However, we see light at the end of the tunnel following a move above the channel resistance last Monday.
Only a close (on weekly basis) above 1,214 would confirm that the bull will take charge of proceedings in the coming weeks.
Prices could test 1,345, the 62%FR of the Sept14-Sept15 fall and the following target is at 1,466.
Within Property, which stock would have the best potential to outperform?
Based on the Relative Strength chart (RS) (bottom of the right chart), we expect Mah Sing Group (MSGB) to play catch up with the outperforming Property sector in the coming days or weeks as it broke below the neckline of the head & shoulders pattern recently. Please look at the Malaysia section for a trading strategy on MSGB.
We expect the property sector to remain positive for short and medium term as long as 1,212 holds in the ST. (Read Report)
Source : CIMB Research