Date of Report: October 2, 2024
Broker: CGS International
Company Overview
Gamuda Berhad is a leading infrastructure and property development company in Malaysia. The company is involved in the construction of large-scale infrastructure projects, including highways, rail systems, and water treatment plants. Gamuda is also known for its property development division, which delivers high-quality residential and commercial projects.
Technical Analysis
As of October 2, 2024, Gamuda’s stock has seen a slight decline, with the current price at RM7.920, down from the entry price of RM8.150. Despite the short-term weakness, the stock remains part of the actively managed portfolio, as it is expected to recover in the medium term.
Stock Position
- Entry Price: RM8.150
- Current Price: RM7.920
- Stop Loss: RM7.400
- Target Price: RM8.74, RM9.00
Investment Strategy
Gamuda represents 8% of the actively managed portfolio, with 12,200 shares. Despite the temporary decline, the stock is still rated as a “Buy.” Investors are advised to hold their positions as the stock approaches its target price levels, with the stop-loss level set at RM7.400 to minimize downside risk.
Performance Overview
As of the report date, Gamuda has incurred a loss of 2.8%, equating to a paper loss of RM2,806. The decline is being monitored, but the overall outlook for the stock remains positive, with the expectation that it will recover in line with market trends and reach its target levels.
Conclusion
While Gamuda has experienced a short-term price setback, its long-term growth potential remains intact. Investors are encouraged to hold their positions, as the stock is expected to recover and deliver gains in the medium term, supported by solid fundamentals and key infrastructure projects in progress.
