SELL Kencana, Buy on Dips Petra Energy, Taann & WTK

On stock picks for the day, investors should look to take profits or sell oil & gas related counter Kencana given the recent sharp rise and short-term technical sell signal, but buy on dips Petra Energy which display significant upside potential despite overbought momentum. Meanwhile, sharp breakout rallies above the 200-day SMA on timber stocks such as Taann and WTK should end their bearish trends and signal the beginning of new up-trends.

Spot month April KLCI futures contract opened at 1,295 and surged to intra-day high of 1,309.5 on Thursday morning, before profit-taking and short sellers dragged prices lower after the cash index failed to overcome the 1,300 psychological resistance level. The contract closed at 1,289.5, off the day's low of 1,286, to lose 10 points for the day.