Price of Parkway Holdings retreated from the $3.92 high set on 11 Jun 2010 to close at $3.62 on Friday. The closing price is lower than the $3.78 a share partial offer from Khazanah Nasional Bhd.
The technical chart is showing weakness in the short term. MACD indicator is now below its signal line. RSI is dropping from overbought levels and stochastic indicator is also showing further weakness ahead.
The price chart looks set to close the gap that was formed when Khazanah Nasional Bhd announced their partial offer for Parkway shares.
The only way for Parkway share price to go up is for Fortis Healthcare to come up with a better offer or if Khazanah Nasional revised its own offer to entice shareholders.
Given the fact that Parkway is now trading at 25.85 times FY2010 PER, it is not exactly cheap to buy the shares at this point in time. A better entry point will be at $3.56 which is the price that both Fortis and Khazanah paid for their stake in Parkway.
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