Wednesday, May 25, 2011

CIMB Research sees more upside for PBA Holdings

KUALA LUMPUR: CIMB Equities Research has a Buy on PBA HOLDINGS BHD [] at RM1.03 at which it is trading at a price-to-book value of 0.5 times.

It said on Wednesday, May 25 that PBA broke out of its consolidation triangle recently to hit a high of RM1.10 before settled at RM1.03 on Tuesday.

'We view this positively and expect prices to charge towards RM1.10 and RM1.15 in the medium term,' it said.

CIMB Research said this uptrend still has legs, backed by the improving technical landscape. MACD has staged a positive crossover while RSI is above the 50pts mark.

'As long as prices hold steady above triangle channel at RM0.97, we think the odds favour the bulls. Only a fall below RM0.96 would prompt us to reevaluate our call,' it said.

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