$DANCO / 5276 (DANCOMECH HOLDINGS BERHAD)

A multi-front bullish outlook (short term).

1. Theme
This manufacturing and trading company is one of potential beneficiary from a strengthening MYR, as its trading division exposes it to purchases from overseas supplier in USD.

2. Palm oil rally
It serves the palm oil industry, a potential forerunner in the market as seen with last Friday’s impulse across plantation names. Amidst a rather red market, the strength of danco’s performance and volume last week was apparent and speaks volumes of its intention.

3. Dividend payout
At a ~5% DY consistently, it gives good safety margin to be defensive if needed

4. Technical
The consolidation had been stable over past 2 months, with a minor breakout.