Monday, June 20, 2011

CIMB Research has Buy on Alliance Financial Group

KUALA LUMPUR: CIMB Equities Research has a Buy on Alliance Financial Group at RM3.16 at which it is trading at a FY12 price-to-earnings of 10.2 times and price-to-book of 1.5 times.

In its technical outlook on Monday, June 20, it said the stock is consolidating in a triangle pattern. The support trend line has been tested on several occasions and we think it is a good indicator.

'We are now waiting for a breakout above RM3.20 before going long,' it said.

CIMB Research said the MACD histogram bars remain in the positive territory while RSI is also rising. The improving technical landscape shows that there should one more upleg.

'We would rather wait for push above RM3.20 before taking any position. The next resistance levels are RM3.31 and RM3.52. Be quick to trim losses if the RM3.00 level is breached,' it said.

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