Wednesday, May 25, 2011

CIMB Research has Buy on Tenaga at RM6.49

KUALA LUMPUR: CIMB Equities Research has a Buy call on TENAGA NASIONAL BHD [] at RM6.49, at which it is trading at a FY12 price-to-earnings of 12.7 times and price-to book value of 1.2 times.

It said on Wednesday, May 25 that Tenaga broke out of its medium term downtrend channel on Tuesday. It also expected follow through momentum to pick up strongly over the next few days. The 200-day SMA (now at RM6.62) will be its next target, followed by RM6.80 and RM7.05.

'Technical landscape is improving. MACD histogram bars have returned to the black while RSI is also rising.

'Any pullback is an opportunity to accumulate. Always put a stop at its resistance-turned-support channel at RM6.30 in case this is a bull trap,' it said.

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