NexG set for further gains on as government explores unit Datasonic buyout

KUALA LUMPUR: NexG Bhd may continue its upward trend after surmounting the 32 sen resistance level, with the stock creating a long candlestick in its most recent session, according to RHB Research, a source claims. The firm indicated that the breakout signals ongoing bullish momentum, with 35 sen and 38 sen acting as the subsequent resistance levels.

Investor interest has surged following news that the government is considering a potential acquisition of NexG's wholly-owned subsidiary, Dat Sonic Technologies Sdn Bhd (DTSB). Datasonic Technologies is NexG's primary operating business and the primary source of revenue and earnings. The firm has estimated the company's intrinsic value to be approximately RM7.5 billion, although it stressed that no agreement or firm offer has been finalized.

NexG stated that any possible transaction must accurately reflect fair value and treat shareholders equally. It also mentioned that a portion of any eventual sale proceeds might be paid out as dividends. From a technical standpoint, RHB Research stated that a decline below 29 sen would undermine the bullish outlook and could spark additional weakness.