Frontken shares extend gains, up 6% in early trade

KUALA LUMPUR: Frontken Corp Bhd shares extended its gains in early trade on Wednesday, rising as much as 6.33%.

The counter rose 2.5 sen to 42 sen with more than 38 million shares exchanged hands. The counter has been rising in the past two trading session. Frontken has already risen some 138% this year.

RHB Research said Frontken was testing the 39.5 sen level in its latest session.

“A bullish bias may be present above this point with a target price of 42.5 sen, followed by 50 sen. The stock may consolidate further if it cannot surpass the 39.5 sen mark in the near term,” it said in a technical report.

The research house added that support may be found at 36.5 sen, where traders can exit upon a breach to avoid the risk of a further correction.

For its second quarter to June 30, Frontken made a net profit of RM5.82mil from RM4.99mil in the same period of the previous year.

Its revenue for the period increased to RM70.5mil from RM62.8mil previously.