KUALA LUMPUR (Dec 26): DSC Solutions Bhd rose as much as 26% in early trade on Wednesday after technical analysts said shares of the automatic identification and data capture solutions provider may see further upside.
At 10.19am, DSC was traded flat at 19 sen with some six million shares done after rising as much as 0.5 sen to 19.5 sen earlier, making the stock the sixth most-active entity across the bourse.
OSK Research Sdn Bhd analyst Mohammad Ashraf Abu Bakar said DSC shares have upside potential if the stock can close above the 20 sen resistance level. "The price target is 23.5 sen and if violated, 28 sen. A close below 18.5 sen will likely see the stock trade sideways, with strong support anticipated at 16.5 sen," Mohammad Ashraf wrote in a note on Wednesday.
DSC had in recent weeks seen crucial corporate developments which could have triggered the substantial rise in the stock's price. The company, the shares of which, closed at 8.5 sen on December 4, had on December 11 received a query from Bursa Malaysia for the unusual trading patterns in the stock.
In its reply to the exchange regulator, DSC said it was unaware of any reasons which could have triggered the trading dynamics of the stock except for the delay in the announcement of the company's earnings for financial year ended September 30, 2012 (FY12).
Exchange filing show that DSC had on December 6 announced its results for FY12 when the company reported a net loss of RM212,000, an improvement from the RM4.8 million a year earlier.
More recently, DSC told the bourse that the firm had on December 17 appointed Datuk Syed Ariff Fadzillah Syed Awalluddin, 69, as chairman of the technology firm. Syed Ariff also sits on the board of MNRB Holdings Bhd, MNRB Retakaful Bhd, Malaysian Reinsurance Bhd, and Ecofirst Consolidated Bhd, according to DSC's announcement.