Tat Hong riding on construction boom?

With a possible bottoming out of this recession and abating risk aversion, growth prospects for the construction sector remain the most optimistic, given a slew of infrastructure projects initiated by regional governments, including Singapore. Falling prices of construction materials have also eased margin pressures.

Dissecting Tat Hong based on technical analysis, the stock looks to have bottomed out and resuming uptrend on weekly and daily chart. Despite the market going through a correction today, Tat Hong is holding up well and up 6.8% @ 1.09 now (11.30am). On the medium term outlook, I am bullish that it might hit a target price of 1.40. As for trading strategy, I think it will be good opportunity to buy more on pullback on the daily chart.

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