Tuesday, April 19, 2011

CIMB Research has Buy on ECM Libra at 89.5 sen

KUALA LUMPUR: CIMB Retail Research has a Buy on ECM Libra Financial Group at 89.5 sen, where it is a trading at a price-to-book value of 0.7 times.

The research house said on Tuesday, April 19 ECM hit a 52-week high of 99.5 sen in early April but prices have since taken a step back. The correction stopped near the 38.2% FR level with a doji reversal sign, indicating that the 88 sen low could be its short term bottom.

'However, only risk takers should look at this stock. The recovery is in its early stage and this is still a possibility that prices may continue to fall on from here. Cut losses if 88 sen is violated,' it said.

CIMB Research said the MACD has flattened out while RSI is also gyrating sideways. On the upside, resistance is at 93.5 sen, 99.5 sen and RM1.05.

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