Date of Report: October 2, 2024
Broker: CGS International
Company Overview
IJM Corporation Berhad is a leading Malaysian conglomerate with diversified interests in construction, property development, infrastructure, and plantation sectors. The company is well-established in Malaysia and has a strong presence in both local and international markets, with a focus on large-scale infrastructure projects and high-quality property developments.
Technical Analysis
As of October 2, 2024, IJM Corporation’s stock has seen a decline, falling to RM2.920 from an entry price of RM3.210. This has led to the stock being removed from the actively managed portfolio after it reached the stop-loss level, resulting in a notable short-term loss.
Stock Position
- Entry Price: RM3.210
- Current Price: RM2.920
- Stop Loss: RM2.920
- Target Price: RM3.40, RM3.62 (no longer applicable as the position is closed)
Investment Strategy
IJM Corporation accounted for 7% of the actively managed portfolio, with 31,100 shares. Due to the stock reaching the stop-loss level, the position was closed. The stop-loss strategy was implemented to limit further losses and minimize downside risk. As a result, the stock is no longer part of the portfolio, and investors who held it have realized a loss.
Performance Overview
The stock’s decline resulted in a total loss of 9.0%, equating to RM9,019. This underperformance prompted the sale of the stock to mitigate further losses, reflecting the portfolio’s risk management strategy.
Conclusion
IJM Corporation experienced a short-term decline that triggered the stop-loss, leading to the closure of its position in the actively managed portfolio. While the stock’s recent performance has been challenging, its long-term growth potential in construction and infrastructure may still be of interest for future considerations. However, investors are currently advised to stay out until signs of recovery emerge.
