The price of Gallant has increased by more than 2% while it is observed that the interest in this stock has waned considerably as compared to the average volume traded over the past 50 days. It is also observed that the MacD line is below the signal line indicating some short-term price weakness.
Company Information
Background
The Company was incorporated in Singapore on 7 April 2003 under the name of Gallant Venture Pte Ltd. The Company adopted its present name on 25 April 2006.
The Group is a Singapore-incorporated investment holding company focused on regional growth opportunities. Its existing investments are mainly located in Batam and Bintan in Indonesia. These investments operate four major lines of business:
(i) Industrial parks business - owns and operates international standard industrial parks with approximately 63 ha of net lettable area in Batam and Bintan which were valued at approximately $442 million as at 1 February 2006;
(ii) Utilities business - provides telecommunications, electricity and water supply and waste management services from their facilities which cost over $409 million to develop;
(iii) Resort operations business - provides one-stop support services to the four resorts and seven hotel properties in Bintan Resorts, including ferry services, ferry terminal operations, estate management and security, fire-fighting and medical services; and
(iv) Property development business - owns land and acts as the masterplanner for industrial park and resort development opportunities in Bintan Industrial Estate and Bintan Resorts. It has properties for development totalling approximately 18,200 ha valued at approximately $541 million as at 1 February 2006.
Trend: Consolidation with a potential bullish breakout bias
The benchmark STI remains sandwiched between the 20 and 50-day moving averages. Interestingly, a possible bullish crossover signal was spotted in the MACD trend indicator, which suggests a potential change in the trend. In addition, upside momentum is also building up as the Stochastic oscillator continues to inch upwards. In order to see a follow-through, the STI needs to break above the immediate resistance at 2952 to see a potential upside push towards 3043 next. On the other hand, a violation below the immediate support at 2910 may negate the potential bullish tone to see a slide towards the rising window gap support of 2886-2875.
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