Thursday, June 23, 2011

CIMB Research has Buy on Genting Malaysia at RM3.58

KUALA LUMPUR: CIMB Equities Research has a technical Buy on Genting Malaysia at RM3.58, at which it is trading at FY12 price-to-earnings of 13.8 times and price-to-book value of 1.7 times.

It said on Thursday, June 23 that Genting Malaysia appears to be trading within its bullish flag pattern since hitting a high of RM3.84 in April. If prices can hold on steady above its recent low of RM3.52, there is a good chance that the candles may take out its 50-day SMA and flag resistance soon.

'Technical landscape is neutral with a slight positive bias. The RSI appears to have built a base above the 40-pts mark, which should be positive for the stock,' it said.

CIMB Research said risk takers may start to buy now while others should wait for a push above its 50-day SMA before taking any position.

'The next resistance level is seen around the RM3.77-RM3.84 levels, followed by RM3.94-RM4.00. Always place a stop at below RM3.52 or below RM3.46, its 200-day SMA, just in case,' it said.

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