Technically, too, Jardine C&C looks ready for a rebound. During the May-September 2021 downtrend, smoothed RSI flat-lined, causing a significant amount of positive divergences between price and indicator. During this phase, volume continuously receded. Low volume, and small price movements on the downside are usually signs of a bottom.
Jardine Cycle & Carriage, which is 75% owned by Jardine Matheson Holdings, is getting less and less coverage from analysts. Most recently, JP Morgan has dropped analyst coverage of Jardine C&C. Yet, the stock remains one of four Jardine-owned companies in the Straits Times Index. And, following the announcement of Hongkong Land’s share buyback, Jardine C&C’s share price is up around 5%.
Hence, market watchers are wondering if Jardine C&C is the next company in the Jardine stable to experience corporate action. For instance, a voluntary general offer for Cycle & Carriage Bintang closed on June 4, 2021, with Jardine C&C lifting its stake in the Malaysian entity to 88% from 59.1%.
