Lately, the Malaysian hajj pilgrims fund board (a significant institutional investor), Lembaga Tabung Haji (“LTH”) has been increasing its position in Ranhill Holdings Berhad (“Ranhill”), as shown below:
Insiders’ purchases / transactions by substantial shareholders, e.g LTH’s recent purchases will provide price support to Ranhill from further downward pressure due to prevailing negative market conditions. We believe that LTH is currently attracted to Ranhill’s expected dividend yield of in excess of 6.0%.
Given its attractive dividend yield, we think Ranhill is currently in “oversold” position (shown in RSI, William%R and CCI), as shown above, as well as it has touched the lower bound of the Bollinger Band. Potentially, one may consider RM1.15 as the immediate profit target price, should Ranhill bounce upwards.
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